Thanks for the O2 info guys, I did find it odd that they would 2 O2 censors. I think I might start there. I will order one and replace it, see if it helps.

@ Jim B. - I Live in Bakersfield California. Kern County some of the worst air in the country, we even have no burn days. So I suspect I live in a strickt smog area. But I been told that I could be so many things. I have a friend that has worked for Benz shops and she has a friend that I faxed my smog test results to and this it what I got back in an email from her.
I will share it with you guys.

"Hey you!! I feel so bad because I am running into walls to help you!!!! Mark received your fax today, He didn't have very good news =(. His words exactly were "this car is a mess". He said that you have a fuel mixture problem, your car is burning too much fuel. It is out of adjustment such as fuel mixture, co mix and timing...which you already knew.1st you have to start with that...then retest and see where you stand. He said you may have burned up your catalytic converter because too much raw fuel is passing through...as well as an O-2 sensor.

This is the problem....in order to do this it has to be done in steps...starting with the most obvious being all the adjustments and then reran on the smog machine to see how it affected your #'s on the smog test. If that takes care of it then you can resmog it...but if not then step two...rerun smog then so on and so on. So in order to do this Mark has to have access to a smog machine.....which he does during work hours. He may have been able to "slide it through" like on his lunch break....but because you already went in to inquire, boss may notice the car and could jeopardize Marks job. I have two other friends who know allot about MBZ and will do side jobs...but one said he wasn't interested because of year of your car. He said those are too hard to work on =(. My other friend Alex...he was interested but is moving this weekend so can't do it until MAYBE next weekend. I do have a few other friends I can ask but after some thinking I think this is what you should do.....

Call One Stop Smog on White Lane and Ashe. There is a tech there named Brandon who is really good on MBZ. You will have to pay a diagnostic fee...which does run 80-100 bucks BUT the good news is that they participate in a Government smog assistant program that you should qualify for that will (I believe) reimburse you your diag fee and pay for up to $500.00 to your repairs. You can call and talk to Michelle...and tell her I referred you if you want (she knows me cause I used to work next door at Euro) She can give you all the finer details about the program that I don't know.

I do think if you qualify for this this will be your best rought...IF NOT LET ME KNOW and we will one way or another get this worked out for you ok!

I*'m sorry that I couldn't be more help to you right now...but I hope this will get you on you way...without having to spend too much $$$$....ttyl, Love ya, Christy"

After reading all of this I am staring to think I should just cut my loses.