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Check the buttons above the center console. If one of them says "ABC" and has a single red LED illuminated after it is pushed, you have Active Body Control. If instead it has a strut-type symbol with curved arrows on either side, and 2 LEDs, then you have Airmatic. Airmatic is the more common suspension. See more at
how can i find out if i have Active Body Control or not - MBWorld.org Forums
Also you can look at the front strut mounts. An Airmatic system will look like the photos at post #18,
http://forums.mbworld.org/forums/s-class-w220/243997-air-matic-failed.html (with the 2 different Airmatic tops - note that the contributor labeled them "old" and "new" based on when they were installed in his car, but in actuality they are reversed; the new style has the mastic); and there is a photo of a Hella relay there as well. See
http://www.benzworld.org/forums/w220-s-class/1492060-whats-suspension-2001-s500-sport.html for a photo of an ABC strut top (which, when you get to the end of the discussion, it was).
If you have ABC, there has been a recall to replace a stainless steel pressure line that has been subject to failure. If you have Airmatic, you will want to read the rest.
Likely Airmatic problem areas are listed at post #6 at
http://www.benzworld.org/forums/w220-s-class/1329314-s-class-airmatic-woes-yes-again.html and there are some things to watch for at
Airmatic Questions!! - MBWorld.org Forums
If your front struts are leaking at the upper seal, there is a repair kit - around $550 parts & labor for both sides. If any struts need replacement, Arnott Industries has a more durable strut - new or remanufactured - at 1/2 to 1/4 the cost of OE. They recently began offering struts for 4matics, and plan to follow with ABC hydraulic struts as well. See
http://www.benzworld.org/forums/arnott-inc/
You will want to check your Airmatic relay, and if it is not Hella brand, replace it. AutohausAZ has had the lowest price recently; see
Your Parts Search Returned 2 Part(s) - you'd need the 4 prong relay. The relay goes in position "O" in the right hand fuse panel in the engine compartment.
A bad relay can either cause the Airmatc pump not to run, or can keep it running when it shouldn't and burn the pump out. The Siemens relay has been problematic that way.
The string at
http://www.benzworld.org/forums/w220-s-class/1491879-airmatic-problems-comp-runs-but-no.html has good info on a pressure line that could come off of the pump, and also toward the end, info on the valve block location. I haven't bookmarked anything on pump replacement and costs, but new pumps seem to run from $300 to $600 depending on where you get them. I'd try AutohausAZ first if you need one.
There are a ton of Airmatic writeups that will give you tons of information - so if you need more, I'll leave you to search.