Hi Jeff, that line plugs in to the back of the air-pump. Looking at your second pic, under the front of the exhaust manifold, there's a thin flat metal shield above the air pump- the line plugs in just under that. I couldn't see exactly 'cause of the angle but feel around or get under the car and I'm sure you'll find it.

Now you can come show me how to replace my head gasket...

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1993 320TE M104
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past:

1983 230E W123 M102
1994 E300D S124 OM606 (x2)
1967 250SE W108 M129
1972 280se 3.5 W108 M116
1980 280SE W116 M110
1980 350SE W116 M116
1992 300E W124 M103
1994 E280 W124 M104
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"music and women I cannot but give way to, whatever my business" -Pepys