Well, I used the Eibach pro kit on my W202, and with lots of pad changing, I eventually went with #1 pad up front and #2 in the rear.
With this set up and my 19" rims, my front tires rub on the fenders at the moment (rolling front fenders soon)
This might be too slammed for your tastes? The car came with a #5 pad...to high, then went to a #3, then setteled on the #1 pad. For u, I would suggest the #3 pad up front, there was about a fingers gap between tire and fender.
For the rear, the car came with a #3 pad, I went to a #2 pad and am thinking of goin to a #1...just waiting till nicer weather so I can see what it looks like with my summer wheels.
I would say a #3 or #4 would be good for what u want. but then again u might have to experiement a bit!!
For shocks...there has been lots of discussions, some people like Bilteins..some people like Koni's, I dont know what is the best...benzes use Bilsteins from factory on the W202's, but with Koni's u can adjust them...with a lot of messing around I'm told.
For ur question about needing many differend pads handy...it depends on if u like how it looks when dumped...if u go with what I've said u might think its a little bit high or u might not, u may want to have some different pads with u to put them in to see what u think..up to u.
And yes the pads do help with the fine adjusting of your ride height, they r also a dampening device between the spring and spring tower... without them it would be very noisey..metal on metal!
Nice choice on wheels, the 16" sport wheels from the C20 sport r very nice, I am using the 16" 6 spokes as my winter rims.
hope this helps u out.