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Sedans in MY1998 had a drain plug on the TC as well as the pan. Double check and if that is the case, drain both and refill to correct level. A new transmission (factory rebuilt) runs $3K-$5K so what's the point in not using MB factory recommended fluid to save $40 or so. But, hey, it's your car your money.
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Good luck.
1998 E320 Wagon
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