Sounds like a fairly extensive project.....I wonder if W124 5-speed equipment is all a direct swap to a W126? It would be pretty neat though. However, for a M103 and a 5-speed, I'd want it in a W124....the W126 is too big....auto's are more fun in lighter/nimble cars.
The auto is not thaaat bad, I've had no trouble taking down a wide variety of cars out there.

Today I played with a jerk in a hummer on the freeway.....I left him behind like he was standing still (he seemed to run out of speed around 85-90mph)
For not being the "most powerful" motor out there....the M103 can sure put some real movement down on the pavement!
Side note: How many miles are on the transmission/engine in that car? I'm curious how long those transmissions will hold up.....my 300E has 141k and it seems to be in good health.....
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-diesel is not just a fuel, its a way of life-

'15 GLK250 Bluetec 118k - mine - (OC-123,800)
'17 Metris(VITO!) - 37k - wifes (OC-41k)
'09 Sprinter 3500 Winnebago View - 62k (OC - 67k)
'13 ML350 Bluetec - 95k - dad's (OC-98k)
'01 SL500 - 103k(km) - dad's (OC-110,000km)
'16 E400 4matic Sedan - 148k - Brothers (OC-155k)