Regarding No 4...
Look on the back of the motor, between firewall and rear air filter assembly. There is a set screw on the linkage, that is what you adjust to bring the shift points back down to what you want. Either a good sized flathead or ~7mm socket will cure your ails. I usually adjust to fully loose then tweak to a bit of preload. Adjust to your desired part throttle. It will take a few tries to get this dialed in.
Your idle seems to be higher than normal in P/N... in drive is normal. I think when I disconnected my OVP my idle shot up to about 1300-1400rpm. These V8s are full of emission crap all driven by vacuum, when it leaks you create running problems. Also the upper to lower intake plenum seals are long over due at this age.
Remember, oil leaks are vacuum leaks.
Since you are new to the M116/7s... you need to pull the cam covers and inspect and probably replace those guide rails immediately. Failing to do this leads to catastrophic valvetrain failure.
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I'm not a doctor, but I'll have a look.
'85 300SD 245k
'87 300SDL 251k
'90 300SEL 326k
Six others from BMW, GM, and Ford.
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