You could find a Euro 5.0, those made quite a bit more top end HP. 240hp vs 185hp I think sounds right. US 560 swap is good choice too, bunch more torque.
I ran euro true duals on my US 560, made a huge difference in power. Stock crossover pipe is 1-5/8" OD only! They four piece cast iron manifolds are even better, but they are quite a bit more expensive. I had $100 into the manifolds, about $50 into the factory downpipes, and maybe $50 in supplies. I kept the stock main cat, ditched the precat. Stock resonators, stock rear muffler. The stock stuff flows quite well.
Heads are decent for what they are, they could use a valve job I am sure at this point. Make sure cams are timed 0/0, there is powerloss otherwise.
H&R I swear made W126 springs, never looked into it because I have no interest.
Good luck and have fun with the car!
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I'm not a doctor, but I'll have a look.
'85 300SD 245k
'87 300SDL 251k
'90 300SEL 326k
Six others from BMW, GM, and Ford.
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