The fuel gauge on my 94 E420 just starts to flicker when the tank gets to half full. The needle will move erratically when the car at idle and also when the car is moving. Anyone else come across this problem?

Pretty sure your just getting a ratty signal at this fuel level. I'd try the sensor. It's not extremely expensive or dificult to replace.
Gilly

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I have the exact same problem on my '88 300E. If you figure out what it is I would love to hear.
Thanks,
Dino

Run the fuel down low, take off the sensor, clean it with an SOS pad (LIGHTLY) and you are good to go. Mine works perfectly a year after cleaning (it had gotten really bad). At worst, if you mess up, you buy a new sender unit (not really expensive).

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1988 Mercedes-Benz 260E

Folks:

We had the identical problem on my wife's 300E. We replaced the sending unit and the problem went away.

Cheers

Bill

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Bill
92 300E (Black/Grey interior: wife's car)
94 E320 Wagon (White/Saddle interior, Eibach springs, '96 E420 16 x 7.5 wheels)