Jasmine, how did you make out with your transfer case. I have a 2004 e500 4matic and am having a similar issue. Noise at speed hard turn???

 

had fluid replaced at dealer.$198.00 Fixed it .Drives like new.There is an open recall on certain transfer cases for the 05-06 E series covered by MB no time or mileage limit if you have a certain vin #.
Good Luck

 

I have had that issue with my car (E500 4 Matic Wagon) since about 15,000 miles.... the dealer kept giving me the run around that they couldn't hear it, etc. Well, the vibration while turning at low speeds could jar your fillings! They finally admitted that there was a transfer case problem and that it was a silent recall back then (2006). Well, I have gone through 3 transfer cases. I am bringing it in next week since the 3rd one has now failed - this time, the person sounded as if this is now a normal call they get. The car is never abused and mostly highway driven. If I didn't have this one problem all the time, the car would be great. I still have my 2001 E430 4 Matic and it has 150k on it with no issues at all with the transfer case. I am wondering if I will get another MB when my warranty is up this winter or go after another maker after about 30 yrs...

 

I cannot tell you how helpful these posts have been. I've been having problems with my 2004 E500 4matic for months. After going to several dealerships, I was told that I needed at least $2000 worth of repairs! I asked them to simply flush the transfer case, and now the car is as good as new.