Code #26 on an M104 W124 is a fault in your upshift delay valve.

This is your lucky day. There's a good thread going on right now about this fault code:

http://www.peachparts.com/shopforum/showthread.php?threadid=35730

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Paul S.

2001 E430, Bourdeaux Red, Oyster interior.
79,200 miles.

1973 280SE 4.5, 170,000 miles. 568 Signal Red, Black MB Tex. "The Red Baron".