would i still be eligible for any recalls? like harmonic recall especially

Yes, anything that hasn't already been done. Make sure to fill out the perforated card in the owner's manual (warranty manual I think it is) with the change of ownership box checked at the top and your info filled in. This will alert them to you being the new owner and then any recalls will come to you.

You can also call MB directly and let them know you own the vehicle. that's what I did. 800-for-merc and follow the phone prompts.

I don't think the 97 E320 has a harmonic balancer issue... Not sure but wan't that only an issue with the V6 engine, not the inline?

it covered v6's and v8

I just looked quickly and thought that it covered only the 98-01 model years both 6 and 8 cyl. edsoto.com has a copy of the bulletin posted. Wasn't it the change to the V engine that caused the balance issue? seems logical that an inline engine won't wobble...