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Yes, the valve cover gasket is supposed to be installed dry. However, I have learned that the replacement gaskets available these days get rock hard in less than a year, and they always start leaking at the back of the motor and by cylinder 6. This is my third valve cover gasket in less than a year. The last one leaked so bad that it dripped oil onto the exhaust causing a suffocating plume of smoke in the cabin whenever the Klima is on. I got sick and tired of it and decided to seal it down. I was loosing a half quart of oil per week mostly from the valve cover.
I don't think removing it will be too hard, one could just shove a tool into the half-circle cutout in the back and lift up.
This does bring me to one observation - if you do decide to goop down the valve cover like I did, make sure you are happy with your temperature sensors since you usually have to remove the valve cover to loosen them.
I've never done the cam seal on a M104.
According to the MB shop manual, you can put the seal on with the cover removed or installed, but doing it installed required two special tools that I didn't have. I also figured it would be easier to get the seal in perfectly square if I had the cover on my bench. Your mileage may vary.
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-tp
1990 300SE "Corinne"- 145k daily driver - street modified differential - PARTING OUT OR SELLING SOON - PORTLAND OR. AREA - PM ME FOR DETAILS
1988 560SEL "Gunther"- 190K passes anything except a gas station
1997 S420 - 265k just bought it with a rebuilt trans. Lovely condition
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