I would try looking for vacuum leaks. Does it have the m103 engine? The title says 260E/190E 2.6, but the 260E is built on a w124 chassis while the other is built on a w201 chassis. Anyways, check for vacuum leaks as for the stalling issue and low idle. If no vacuum leaks are found check the EHA valve on the back of the fuel distributor. Also, check the fuel-air mixture. As for the dis cap burning out....check for arcing inside the cap. Check the integrity of the rotor and also check the orange plate that is against the cylinder block that holds the rotor for cracks. That may cause some problems. What I did with mine was cover the enire surface with electrical tape and then spread an even film of silicone over it to make sure I wouldn't get any arcing.

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1990 190E 3.0L