1. I haven't heard of this fuse. It looks like a red light bulb? The only red thing with a fuse on it, that I can think of, is the Klima relay, and that's under the hood.

2. Difficult to do without breaking the plastic. Once the panel is out, you remove the gauges from behind. That part is easy.

3. I don't know if there's a special tool for needle removal, but you can use two spoons to carefully pry the needle up, exerting even pressure with both spoons.

4. If you're removing the gauges from the bezel, you might want to replace the bezel with that from a later model W124. See the link below for details on why the new bezels are better.

http://www.peachparts.com/Wikka/W124InstCluster