Yes. Stupid electronics.
Who do you believe, the almighty computer or the good old dipstick ?
If you really want to spend some money on a new oil level sensor, go ahead.
Here you go:
http://catalog.worldpac.com/mercedesshop/sophio/wizard.jsp?partner=mercedesshop&clientid=catalog.mercedesshop&baseurl=http://catalog.peachparts.com/&cookieid=1XC0ZKQX925D174TLW&year=2000&make=MB&model=S-430-001&category=A&part=Oil+Level+Sender

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2007 C 230 Sport.