I have a '95 E420, heater and fan are not working, local dealer wants about $1,200. to repair, seems high any suggestions?

Blower motor I assume? You can always try and get a used one, but then you run a chance of it breaking (again) sooner than a new one would. Ebay, car-part.com, ect.

Jump over to the e class (w210) forms and there is a DIY posting at the top of the list that shows a fix for the blower motor regulator. It worked for me and cost $180 dollars with 2 day shipping. The only thing I could add is test the motor before spending the money on parts. Remove the trim panel under the dash on the passengers side and the cover for the heater box you can see the blower motor. Pull the thick blue wire from the motor, attach a jumper wire to the terminal on the motor and the other end to ground (I used the metal plate that the motor bolts to)and the motor should fire right up if it is good. I can't remember if I had the key on or not when doing this so try it both ways. The only other thing I can say that I found out about mine (1996 e320) was that several of the climate contron sensors run of of a circuit that is on fuse number 8 under the hood. Mine was no good. The factory fuse chart shows no association with this fuse and climate control. Also eclassbenz.com shows you how to do climate control diagnostic from the dashboard climate control panel. Good luck.