The threads can be fixed by retaping them. Rental from the Auto store.
If you can't but the whole control arm with new bushings and ball joint, like stated above, you really need to WORK on them to get them out. I had to actually tear/punch out the rubber center section, then carefully cut the side of the metal bushing with a hacksaw, THEN use a air hammer to get the damn thing out. It was a real bear!
See post #15 here....
http://www.peachparts.com/shopforum/showthread.php?t=289167&highlight=snag
Make sure the new bushing go in the correct orientation. and only tighten then when car is sitting back on the ground. I know on the w124's one mark goes vertical and the other horizontal. Hopefully you marked or took pictures of the orientation of the c-arm bolts and washers. An allignment will be in order after.
The spring compressor looked to be the correct MB tool . The spring is likely just stuck next to the bubber spring pad , wedged up in there. With some wiggling will fall out - catch it!
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1987 300TD 147,000 miles- Palomino leather interior, 1995 facelift and body cladding, E350 wheels, Rebuilt suspension and sport springs, rebuilt turbo, New Monarch injection pump and injectors....and the list goes on and on...