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Dextron II, III, or IV are fine for your Mercedes transmission on these older cars; however, if I had a high end s500 or s600, I'd stick with the Mercedes hydraulic fluids. Why? Because these transmissions were field tested with their proprietary fluid. But in reality, there's not much difference in the chemical nature of hydraulic fluids except perhaps little differences in viscosity and additives. But there is a huge difference in cost which benefits Mercedes and the vendor that produces it for them.
Just my 2 cents of opinion.
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