> I'm getting ready to install a diff I found locally in my '83 300D.  
> The CD
> says the muffler and pipe must be removed, the carrier bearing support 
> must
> be removed, and the compression nut on the driveshaft  loosened first. 
>  I

I don't recall actually having to do that on the 240D I did,
but my memory's not always the best nor are my notes.

> don't see a compression nut on the rear drive shaft, and it looks to 
> me like

It's there, forward of the center carrier.  It tightens up the slip
joint between the two halves.

> the diff could simply be unbolted, lowered on a jack, slid off the
> driveshaft, and the other diff installed.  (All of this done after the
> axles were removed.)  Am I missing something here?

It might be possible, though trickier.  There's a center pin for
the driveshaft where it goes into the differential.  By loosening
the shaft you can compress its length, allowing easier assembly,
etc.  But I think you might be able to do it without, if you slide
the diff onto it as you swing it up and into position in the rear
subframe.  (I lowered the subframe some on mine, else I couldn't
reach the top bolts.  But I note that I left the shocks and parking
brake connected.)  See:

        http://userweb.windwireless.net/~jimc/mb240d.html

Search for "differential", there'll be a lot of hits.

-- Jim


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