The exhaust manifolds and downpipes are are a 4-2-1 design, instead of the standard 4-1 log manifolds normally fitted to the lesser engines. The rest of the exhaust is the same as the second generation european 500SE/L
I'm not so sure exactly what the difference is in the cams, but I'd assume higher lift and different durations.
The throttle body is also larger on the 560.

Other differences that I can think of are the EZL and ECU.

A few years back my first generation 500SEL popped its engine, so I transplanted a 560 option 822.

I did remove all of the electronics and use the 500's ignition system and intake (with the exception of the throttle body) to make the transplant easier. Yes, I probably dont have as much power due to the slightly inferior ignition system, but its still powerful and smooth.

Like I said earlier, if your heart is set on the 560 engine.... you really need a running 560 car to transplant all of the junk over from, otherwise you'll be on the hunt for things like wiring looms, ecu, ezl, instrument cluster, exhaust system etc.