The height is determined by the coil-spring and pad. The self-levelling strut itself, only brings the rear back to level.

The proper procedure is to have a full-tank of gas, and two people or 250-lbs in the front seat area.

On a flat and level floor, disconnect the self-levelling adjustment rod and move the lever of the self-levelling valve so that there is no pressure in the struts. That is, only the coil-springs are supporting the rear. This the car's level height at rest.

Now adjust the self-levelling valve's lever so that it is in the neutral position (there are holes in the lever and valve body which will align when in the neutral position).

Now adjust the self-levelling control-rod so that when connected to the lever, the lever remains in the neutral position. If you do not have enough adjustment, adjust the connection at the rear-swaybar.

Remember, adjusting the rod does bring the back up, but it makes the strut harder/taller and the coil-springs do less of their work.

In fact the factory manual specifically states *NOT* to use the self-leveling control-rod to adjust the height, but to use coil-spring pads (pg.3-bottom of the first PDF).

http://www.silcom.com/~neilv/sportline/images/W124-vehicle-height-40-0300.pdf
http://www.silcom.com/~neilv/sportline/images/self-levelling-control-rod-32-0660.pdf

:-) neil
1988 360TE AMG
1993 500E