OBII enhanced code reader
 

I would like to purchase a handheld code reader for my 2006 E320 CDI. Ideally it could be used for troubleshooting check engine light issues and disabling the SBC brake system. Is there such a code reader available that plugs into the OBII port and performs both these functions?

If not, what other options are available?

No OBDII hand held reader will do more than read the codes and reset them if you get a nicer one it will let you see the data while the car is running.

To change settings or to turn off the SBC braking system you will need software.

On page 99 the of your owners manual the SBC system is talked about, it tells what turns on and when the system is off.

Make sure that no one touch the keys lock all doors loosen the brake cap on the master cylinder also.
If you are going to change your brakes make sure that you turn off the tow alarm.