Long story short, I ended up with another parts car this weekend. It's a 91 300SL. This thing is disgusting, but it was essentially free. I actually traded the guy some old power tools I didn't need for it.



Initially I was trying to just get the differential from the guy, but after discussing a bit I negotiated to just take the whole thing.
This car has the M104 motor with the 5 speed auto trans. The rear diff is a 3.69 ratio. My math says a 3.69 diff with the 31 inch tires should be similar to my 400E with 25 inch tires and a 3.06. It's aggressive, but still usable on the highway.
One challenge I'll have is the fact that this car does not have ASR. The 500SL does. I think I have two options to make it work.
Option 1 is to install the 3.69 diff, and then swap the rear knuckles to the set I snagged from a 2000 500SL. Those have wheel speed sensors in the knuckles. I'm not sure which axles to use. I have a couple sets. None have tone rings, but I have a set of tone rings I should be able to affix to whichever axles I use. I think that will allow me to keep ASR and more importantly ABS.
I think another option would be to swap the ring and pinion into the 500SL housing. I know the 500SL housing is the 1.4 liter reinforced unit, and I believe the 300SL housing is the 500E style 1.3 liter housing, but I THINK the ring and pinion gear set should interchange.
I'm guessing that the ring gear offset would be wrong, so I'd probably have to machine a spacer and get longer ring gear bolts, but I could do that.
Obviously this option would allow me to retain the ASR and ABS without messing with outboard wheel speed sensors, or CV axle changes. It does require custom parts (I think) and a full gear setup though, which is a lot of work.
I think I'll probably try option 1 first. If for some reason it doesn't work, I can pivot to option 2.
I wish I had some kind of limited slip I could install at the same time. I have a buddy who has a 98 300td parts car that supposedly has a limited slip. The Quaife limited slip lists the W210 as an application, which makes me think the factory W210 LSD carrier may interchange with my 1.3 liter carrier from the 300SL. I could be wrong on that though.
If anyone has any knowledge on this, please chime in. Most of the research I've done doesn't detail much with the W210 diffs, or the 3.69 ratio stuff since that stuff is usually outside the scope of 500E work.