I have pried back the right kick panel enough to see that it is apparently bolted through to the outside of the car??? Does anyone know how to get this thing off? The MB manuals were no help.

If you are speaking of the plastic cover on the side, it is held in by two locking press-fit clips that have to be pulllllllled off.

88 Kick Panel
 

Thanks. How do I get the carpetd piece which runs under the glove box off? I removed al of the obvioius screws but something is still holding it. Is this an HVAC duct as well?

The lower dash in your W126 is very similar to my W116, so they probably attached the same way. After I remove the screws it just pulls off. There are a couple of plastic tabs attached to the carpeted piece. They go into metal clips in the dash itself. Like I said though the carpeted panel should just pop out if you have removed all of the screws. Like everything you do for the first time, take it slow. I am sure alot of us have yanked on some plastic part just a little to hard and snap.