Some Background
Applicability and Efficiency
This thread would apply to not only the S430, it should also describe similar info for all M113 V8 engines and M112 V6 engines used in various MB platforms. The only practical difference between these modular engines for this job is 2 fewer cylinders and differences in air inlet housings. As such, there are some workshop instructions posted by 43sqd on the ML W163 forum (see post 2 of the link) and a pictorial exploded diagram (see post 9 of the link).
http://www.benzworld.org/forums/w163-m-class/1612771-ml430-valve-covers-oil-leak.html
NOTE: An efficiency gain can be made by combining valve cover gasket replacement with spark plug / wire change outs and / or crank position sensor replacement. If you can replace the spark plugs and reseal the valve covers at the same time, the labor is reduced substantially. During this job, accessibility to the CPS will be greatly improved, such that you can see and touch the CPS at the same time, should you care to complete that preventive maintenance item.
Rubbers

Heat and time will age rubber products so that they lose pliability, creating cracks and causing leaks. This is why periodic replacement is needed. The affected components in this work scope will be valve cover gaskets, the RTV (Room Temperature Vulcanization) sealant for the breather covers, and the breather hoses. All of these components will need replacement at around 100,000 miles or 6 years. If they are not leaking oil or air at this mileage, they will be soon. Oil leaks can get onto the coil packs, spark wires, and drip down to the exhaust manifold. Air leaks in the breather hoses will bypass the filter (think sand in your engine) and unmetered air will bypass the MAF and affect mileage. If you are thinking of just replacing the RTV – it is more than likely that the hardened and brittle breather hoses will crumble in the replacement process and need to be replaced.
Breather System
Evacuation of blow by gases is necessary to prevent an otherwise sealed valve cover system from losing oil. The M113 / M112 engines do not use PCV check valves to reduce crankcase gas pressure. Instead, there is a two level evacuation system for the crankcase and the valve covers. A small diameter hose extends from each breather cover via a barb with a 1.5 mm diameter center hole and connects to a common tee at the aft section of the intake manifold. The connecting tee has a down section that sits in front of the throttle plate and sees intake manifold pressure. This small hose system allows intake vacuum to be applied to the breather covers at idle speed. On the driver’s side, a single larger diameter hose connects to a full diameter barb on the breather cover to the MAF body after the sensor. This larger system allows a vacuum at higher engine speeds to be applied to both of the valve covers and crankcase via the timing chain cover. The breather cover on the driver’s side is longer to separate entrained additional oil from crankcase gases before being sucked into the air intake. For this reason, the driver side breather cover also has 3 oil drain ports to help minimize oil consumption at the intake. Another benefit of a properly working breather system is that formation of engine oil sludge can be reduced by evacuating water vapor from the engine crankcase. Conversely, an engine with sludge buildup can clog the drain ports on the driver's side and result in excessive engine oil consumption. These are simple systems that need to be periodically maintained to keep your engine in working order. Replacement of the breather hoses is a wise and inexpensive investment for your car engine. Witek from the ML W163 forum posted an excellent diagram of the breather system in the attached link on post #11.
http://www.benzworld.org/forums/w163-m-class/1508527-please-help-i-got-oil-coming-2.html
Vacuum Leaks
A poorly running car can often run amazingly well after an afternoon’s worth of work, going through the various rubber boots and hoses around the engine. Vacuum lines, intake boots, seals and many other small gaskets around the engine can be the source of poor running and idle problems. Many times, a lean running condition can be traced back to a cracked or torn rubber in the system. This is another reason to renew your car’s breather system!
Metallurgy
The M113 valve covers and breather covers are made of Magnesium. (So is the intake manifold and several other engine components) The primary benefit of using Magnesium instead of Aluminum is weight savings - a one third weight advantage. However, this tradeoff is not without cost. Although Magnesium has approximately the same strength as Aluminum, it is more brittle. This means that if a breather cover is dropped to concrete or pried up with a screwdriver or pulled up by the breather hose connection – it is likely to crack. (Valve and breather covers are sold together. $100 used replacement with no guarantee of condition - $400 for a new replacement.) Another drawback of magnesium is that it is more susceptible to general and galvanic corrosion. Magnesium corrosion is more pronounced than in Aluminum. Ever hear of someone complain about how their engine looks after degreasing with a mildly acidic bath? Looks like their engine has leprosy. Even worse, some of a degreasing solution will get trapped in the valve / breather cover gasket capture grooves and cause a corrosion cell and completely deform the parallel lines of cast grooves. This will cause a vacuum leak and an oil leak. This type of corrosion makes it hard for a new gasket or RTV to achieve a good seal. Although contact with Aluminum and Stainless steel will not cause extreme galvanic corrosion; magnesium to steel will set up a galvanic reaction. This is why the steel through bolts for the valve cover are painted – to minimize oxidation of the magnesium. One other drawback of magnesium – if you have an engine bay fire that goes above 1000 deg F, the car will be a complete loss because the magnesium will ignite and self-oxygenate when using traditional fire extinguishers. Although it is difficult to ignite a block of magnesium, after it is lit, adding water or a CO2 fire extinguisher will be ineffective and simply add oxygen to the exothermic chemical reaction – just get everyone at a safe distance and call the Fire Department.
Mechanical closure design
The breather covers mate to the valve covers with a ridge and valley. A small amount of RTV sealant should be applied in the valley to accomplish a good seal. Filling the valley is all you need. Too much RTV will result in excess material being transported to the engine oil sump and blocking sump screen flow – partially starving the engine of lubricant. Breather covers are initially fastened to the valve cover from the factory with aluminum cap screws (2 on passenger side, 3 on driver side). These are not reusable, and need to be replaced with stainless steel. Reusing the aluminum cap screws will likely result in their shearing off. Substituting a steel cap screw instead of stainless will result in galvanic corrosion since the cap screws thread directly into the magnesium valve cover. These cap screws are to be lightly torqued to 4-Nm. Over torque could damage the magnesium threads in the valve cover. The purpose of the cap screw and accompanying light torque is to hold the alignment of the covers during installation so that the RTV sealant is not disturbed while curing.
Valve covers have a capture groove for the gasket. A properly manufactured gasket is molded to include side ridges for a tight fit into the valve cover. This means a good fitting gasket will allow you to hold the valve cover in its normal upright position and shake it without the gasket falling out. This design negates the need for any RTV sealant or gasket tack at this sealing junction. Less RTV sealant means less chance to get rubber blocking the oil sump suction. Long steel bolts hold the valve cover to the aluminum head. These reusable steel bolts are torqued to 8 Nm. Some of the long bolts pass through the breather covers. Over torqueing of the long bolts not only brings up the possibility of bolt shear and pulling out the threads from the aluminum head – it is also useless in trying to fix a leaking gasket. At the four corners and each through bolt location of the valve cover mating surface are “crush stops”. These are cast metal ridges that prevent over compression of the gasket and provide multiple points of metal to metal contact between the valve cover and cylinder head (outside of the gasket of course). In other words, you can easily strip out threads in your aluminum engine head, but you cannot over-crush the valve cover gasket. See photo below for two crush stops on the corners of an installed valve cover - the black gasket disappears behind them.