So I assume you have a 250S or 280S based on the description. Sadly, these are the least desirable 108s. However they are a great car and a great platform to build off of.
First and foremost, what year is this? I always saw info from old board members (Such as psfred whom I haven't seen in years now) that something like pre-68 or pre-69 vehicles couldn't easily accommodate a 116/117 engine due to their brake booster location which was later moved. I've never been able to verify this myself so I assume it to be true unless otherwise seen.
That being said, the manual you have will not bolt up to an M116/117. However, that would not deter me from putting one in. An aluminum-block one (3.8 through 5.6) would net you a much lighter engine, so you wouldn't need to swap front springs out to be able to have the proper factory-intended height and handling. Since you sound like you want a V8 - and who could blame you? - you'd probably want the 5.0 or 5.6. I'd personally do a 5.6, with a nice true dual exhaust, but keeping it in the "Spirit" of OEM with 2 tailpipes on each side (for a total of 4 chromed exits).
If you kept an MB engine under it, it wouldn't be likely to hurt resale, even if not original. Most buyers of these now are buying to modify and not for originality. As a result, you have a pretty desirable mod already done. If you were a huge stickler, you could even D-Jet or Megasquirt the 5.6, use the older-style valve covers, distributor, intake manifold, cleaner, etc. from a 4.5, and nobody would even know simply looking under-hood that it wasn't a stock 4.5.
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Current:
2021 Charger Scat Pack Widebody "Sinabee"
2024 CR-V Hybrid
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1972 280SE 4.5
2018 Durango R/T, 2014 Jeep Grand Cherokee Limited "Hefe", 1992 Jeep Cherokee Laredo "Jeepy", 2006 Charger R/T "Hemi"
1999 Chrysler 300M - RIP @ 221k
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