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No, it should be fine.
There is a part that the electrical harness connects to that passes through the upper oil pan section, over on the right side of the engine, that's how the sensor "connects" to the rest of the vehicle.
One thing i wonder about is that if you are getting the amber "oil can" light in the cluster, you typically get a message in the odometer section saying "lo oiL" or "HI oiL" with something else like +1.0L or -1.0L or like that. MB has this engine, and most of their engines, set up so the proper amount of oil in the crankcase will give a dipstick reading in the middle of the operating range. Possibly your oil level monitor is reading too much oil after the engine warms up. With an oil change, you should put in 8.5 quarts of oil in it, not 9, it's very picky.
Gilly
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