After having the motor checked out, it was junk parts! It appears that the sleeve/ bearing on the end of the armature broke and the pieces were binding in between the magnets and the armature assembly, hence the jerky motion until the motor smoked itself. Re-assembled and the unit with the new oem bosch unit and it works like a charm. Please take the advise of another person on this post and put a towel down unless you have a flexible magnet, as I dropped the nut off the motor shaft and it found the lowest possible point under the blower motor assembly.
Also take the advice of making a mark on top of the motor shaft and the adjacent arm assembly, as it took me about four tries to get the blade adjusted, thats when I dropped the nut, as I had the motor and blade assembly parked and not in the center. Figured I had to do this as I was starting with a new motor.

On another note, which I will start a new thread, I have found a fix for an intermittent short where by the ABS light comes on and the check engine light goes on alternating back and forth. When the ABS light comes on the engine runs real rough and does not idle very well. This is problematic with this era and milage of a 124 model. My mercedes mechanic friend told me the fix and it seems to work. Once I have permanently done the fix and confirmed the results I will post it. Very cool and very simple!

thanks for all the support. This forum is way cool!