The proper oil is ATF. DexronII/III is fine but will be stiff in cold weather. I REALLY much prefer Mobil 1 ATF. It's MUCH better than Redline in MY OPINION - and I've compared them in two different MB 5 speed manual transmissions - I drained out the Redline and immediately filled with Mobil 1 and the improvement was immediately evident.
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The reason that you should never use an ordinary EP oil in these manual gearboxes is that EP oils use phosphorus-based anti-wear additives (giving the distinctive 'EP' smell). The phosphorus additives make the oil acidic and quite chemically aggressive to the synchro. materials that MB use. ATF-type oils, on the other hand, use zinc-based anti-wear additives which are far more chemically inert toward non-ferrous metals
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quoted from a larger documant written by Dr. Eric Chowanietz.
If your transmission is already damaged then you whatever works for as long as it works I guess.
Marshall