You're way too high. It's down on the side of the transmission. Follow the gearshift linkage forward and it will attach to the NSS. Click on the picture at the link below for a view of what you're looking for.

http://catalog.worldpac.com/mercedesshop/sophio/wizard.jsp?partner=mercedesshop&clientid=catalog.mercedesshop&baseurl=http://catalog.peachparts.com/&cookieid=1W50YN0EQ26P1BQR0Z&year=1996&make=MB&model=E-320-002&category=All&part=Neutral+Safety+Switch