The early 211'S were junk compared to the newer ones. Lots of Audio/Telematics problems. Lots of electrical issues including convenience features not working, charging system problems, dead batteries, etc. The newer 211's (2005 and up) don't have as many problems, but they aren't perfect either. Several Service/Recall Campaigns are in effect at this time, most notably the SBC braking system. One thing I can tell you is that the new 211's drive a lot nicer than the early ones. They're also much quieter and have more power. The M272 engine is a big improvement over the M112 as far as power is concerned. The 722.9 seven-speed transmission is another matter though. It's been plagued by hardware/software problems since day one. MB is doing a good job supporting the dealers though. As of now, the overwhelming majority of transmission complaints can be handled quickly and accurately.

I've been driving a couple of different 211's for a few weeks now (for various intermittent issues) and to be honest, I like it better than my '94 E320. My 124 is more of a beast. The 211 is much more refined. The 124 feels more solid, but the 211 is so much smoother and quieter. It's a real pleaure to drive after a tough day at work. I still prefer the M104 engine though. I love the throttle response and the torque.

There's no doubt that the old E-Class and the new E-Class don't have much in common, but that doesn't mean the new one isn't a nice car. Lots of people like to bash the new cars because they're not really DIY friendly. Drive one around without the salesman for awhile and see if it grows on you. Good luck and let us know what you decide.