E320 Catatrosphic failure of transimission

[SilverRD]

Just informed by my dealership that my 1999 E320 4matic wagon with 104,000 miles (of course now out of warranty), regularly brought to the dealership for service, needs a new transmission, transfer case and torque tube. It will cost $6000 to repair. OUCH!!!
The last time the car was in October 2004 my service advisor felt I just needed an oil change and not a service.
I purchased this car preowned at 40k miles and it had at 39.700 miles the transfer case, oxygen sensor, hydraulic engine mount, the planetary gearshift, and transmission control replaced. I thought when I bought it great, this problem was resolved before I bought the car, but now in hind sight (20,20) it was a red flag. I loved this car and thought I would drive it till it died--I did not expect the death to come so soon.
Does this series have a history of transmission problems?
I would appreciate any advice on how to deal with this before I sit down with the dealership and talk.

[stevenintn]

What ever happened with your transmission problem

Stevenintn