Is this car OBD-1 or OBD-II?
My previous car, a 1993 300E 3.2, failed the smog test, and the problem was a plugged up catalytic converter.
I took it to a local muffler shop that my Mercedes indie recommended, and they welded a new one on for about $200.
I took the car back to the smog check station, and it passed, but just barely.
The shop said that on all OBD-II Mercedes (1996 - present), they will not put aftermarket cats on anymore. It seems the computer system in the car is too sensitive, and anything but an original catalytic converter will set off a check engine light.
You might also check the units at
www.timevalve.com
They are a frequent advertiser in The Star Magazine, and appear to have an excellent reputation.