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The service manager finally agreed to eat the labor but still charged me for the parts at $185.00 (the bearings only come as a hub assy).
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Unless you have a very special car, the front wheel bearings are available as a kit (2 bearings, one seal) for less than $50.00.
http://catalog.eautopartscatalog.com/mercedesshop/sophio/quote.jsp?clientid=mercedesshop&cookieid=1FT0K8ENP1G50PGZ51&baseurl=http://catalog.peachparts.com/&partner=mercedesshop&year=1999&product=K8020-66732&application=000439430