Real high off the ground to clear the shocks. It is best to do this with the
big floor jack. I also put a safety jack under the arm. I don't recall if
the arm has something to block the spring from popping out... so that is why
I suggest you do the safety jack under the arm before you remove any bolts.
Better check the manual first. On some cars (not necessary MB or
300SD), the shock also works as a limiter so the wheel/tire don't drop
all the way down. If the car is jacked up first before the bolts are
removed, the spring may force the shock to pop out when bolts are out.
At least I am sure W201 front shock also works as limiter. I recently
did the work.
What I would suggest is to jack up (as high as possible) the car under
the multi-link. Place a jack stand under the body (W201 has 4 rubber
buffers for jacking. I don't recall if W126 has or not). Remove the
tire/wheel, then remove the bolts from shock. Lower the jack at last
while keeping the stand there. The axle will come down then you will
have the space to remove the shock.
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