I'm not sure it would be a very pleasant car, these mods tend to make a car more revvy and peaky which is counter to the character of the w124, I suspect a free flow exhaust and performance filter would help, but any serious modding of the engine is going to be more expensive than buying a reasonable 6 cylinder car. I had a Volvo Amazon tuned with polished ports etc, 4 branch manifold, straight through exhaust, lightened flywheel and big carbs and it flew, however, try keeping it under 30mph and it was a total pig, narrow power band and no low down performance.