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Mercedes received major updates after 1997 with the 1998 production models.
You have the new style electronic key and ignition without the switchblade and ignition tumbler that fails due to pin wear inside.
A key shouldn't be anymore than $260.00 to be exact. $300.00 is pushing it in my opinion.
It would only take me five minutes to look at your EIS system on Star Diagnostics to understand if there is anything wrong with your system. A generic code scanner isn't going to cut it.
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Only diesels in this driveway. 
2005 E320 CDI 243k Black/Black
2008 Chevy 3500HD Duramax 340k
2004 Chevy 2500HD Duramax 220k
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