So this morning I started her up and heard an awful ticking coming from the passenger side valve cover. I turned the car off immediately and began diagnosing.
I couldn't quite put my finger on the sound of the Rick, more like a very very light rod knock.
It had me worried so I prepared for a day of wrenching.
My valve cover gaskets were shot and she was leaking like a faucet. I then picked up new gaskets and began tearing into her.
The first thing I noticed was MASSIVE AMOUNTS of sludge, and the rocker arm assembly was finger loose!
All that sludge made me want to further inspect. I began removing the supercharger and intercooler. The Y pipe and intake plenums were covered with sludge. As was all the intake runners.

Now here's were it gets interesting.
I found a small clip sitting on top of one of the intake valves!!
Rubber chunks were also all over the valves.

Long story short I removed the clip and inspected EVERYTHING.
It all checked out, was cleaned and is running million times better.
What a relief that was that I found that in time and nothing else seemed damaged.
Here's some pics. (iPhone uploaded, I don't have a computer :p)

http://img163.imageshack.us/img163/5396/1359960989360.jpg

http://img132.imageshack.us/img132/825/1359961683481.jpg

http://img254.imageshack.us/img254/9761/1359961819730.jpg

http://img717.imageshack.us/img717/6180/1359961860419.jpg

http://img402.imageshack.us/img402/9522/1359961901398.jpg

holy crap.. What kind of engine oil have you been using?

Fixed

Pretty bad, but not that unusual for higher mileage m112/m113s. We need affordable solutions for catch cans and PCV filtration!

I bought the car but 3-4 weeks ago. The previous owner did NOT take care of the car

Did you find out what he clip was from.

It looks like it road through between a cam and lifter.
I would bet there is something well scored in there.
The scratches will continue to file against each other till the parts are "polished".

At which point any surface hardening will be gone and both pieces will be out of spec.

Clips like that are usually spring steel witch is very hard and unforgiving when squeezed under high pressure.

I pulled pretty much everything off the motor (other than block) nothing seemed scored or damaged enough to cause future problems. I caught it really early.
I also miced the valve seat the clip was found on, it all checked out

You pulled the cams?

Yes, I couldn't find any signs of uneven wear

Glad you are an aware MB owner and caught it early BTW What engine oil do you use? How often do you change it and what are the miles on your C32?

I use 10w-30, the car has 162k. When I had my 02 C32 I changed it every 4-5k. I haven't had this one long enough yet, but it will be changed every 2-3k because if the condition I found the engine to be in

You are one lucky guy!

I would not expect war that soon, but just a few scratches on the cam or lifter that start the process.

(Don't ask how I know)

Oh I know too, trust me Kleeman cam replacement?

I'm thinking your AMG likes you more than the PO

Right?! I swear I could hear the engine thanking me all the way back to my place after it was fixed :p
And I'm actually taking care of it, unlike the PO

wow thats alot of sludge, i changed mine every 5-7k miles w/ 0w40 i had about 120k miles on my c32 and when i changed my valve cover seals, engine was like new.

Fantastic work, lucky they sold the car to you, it wouldn't have gone well for them with their level of care and concern.

well, today on my way to florida passing through georgia my car lost oil pressure and i spun multiple rod bearings. the sludge from the poor maintnence clogged my pick up screen and boom......

the car is being towed to fort myers where ill have a 2003 M112K engine waiting
ill post pics and updates later on.

damn. Sorry to hear that. Hopefully the new engine serves you well.

Post some pics of the swap

Well my car finally got here. I'm going to the shop today to start tearing down the engine. Ill post pics and keep updates

Well, last night I went down the shop that my car is at to do some further diagnosing and found a lot more issues than expected. Turned out that not only were the rod bearings done, cylinder 5 and 2 had bent rods as well. We also found out that the intake valve that I found a clip in had pretty much broken off its stem... What a mess. And the culprit was a sludge filled oil pick up tube. It lost oil pressure on the highway and I had no idea, being that my oil level sensor is broken. (It always reads 9 quarts)
Next step is to find an engine. The one that was waiting here had a cracked block somehow.

Sorry to hear that. Hope you find a new one, they can't be too common.

After 2-3 hours of searching online, I have sourced one from an 03 C32. The yard is in NC and they state it has 45,354 miles. I've verified the vin and the car was pulled off the road at exactly that mileage. They're asking 3600$ shipped. Does that sound too good to be true??

well yesterday i pulled the engine out. the whole process start to finish took about 12 hours. (had to wait for my engine hoist and jack stands to arrive) over all it wasnt too bad id say. i had a lot of trouble getting the engine to come off the tranny. other than that everything was surprisingly smooth. i did end up getting that engine i had posted for 3600. the engine is actually out of an slk32. they have had it for 4 years! ended up paying 2k shipped. it has 45,354 miles and the slk32 it came out of was totaled in a rear end wreck in april 2008.
now i do have a question. does the torque converter unbolt some how off of the fly wheel? ive never really seen an engine that the torque converter comes off with the engine.....
Pictures are coming, i just have to find a way to upload them.....