So you are saying that, except for the ground wire and the bowden cable, the engine is absolutely electrically isolated from the chasis?

I've got this gunk, too, but it never worried me. I also have a braided "silver" grounding wire on the wheel well near the battery that is looks like it got chopped from its proper connection. Is this supposed to be the real ground?

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Paul
2004 E500 4matic; 72,000mi