You guys just saved me big $$$. I was able to remove that ignition cylinder in 10 seconds. Any longer, I would have been looking at paying big bucks!!! Just used two separate wires made from a coat hanger with 45 degree clips from my wire cutters at the ends. Put key into Acc Pos #1, stuck in each wire with 45 degree angles facing inwards and the sucker popped right out! I almost couldn't get the key to come out of the cylinder after that!!! Whew! NOBODY fixes or repairs these that I could find locally. Went to MB and they ordered me a new one that will be here TUES with a new key for $97. Until then, starting and stopping the car with a screwdriver. Put it back together without the cylinder so it looks normal. Luckily, I have full insurance Here is a link that describes the process from a manual:

http://www.justanswer.com/mercedes/1izjh-ignition-lock-cover-1991-300e-difficult-remove.html