Thanks all for your input.
I did some research about springs on EPC and found that front sprigs "with higher loading capacity" were available, p/n 108 321 03 04. These are standard W108 springs and diameter of the wire is 16.20 mm instead of 15.6 and has 10 windings instead of 9 3/4 compared to the original Pagoda spring p/n 113 321 04 04. The workshop manual also reports some springs for "harder suspension for bad roads conditions" p/n 113 321 08 04. Diameter of the wire is 16.20 mm and number of windings is 9 1/2. I measured the wire diameter of my springs in the front and I got 16.20 mm, same as compared to the ones of a spare W111 3.5 Coupe front axle I have. So I guess I have the 108 321 03 04 "with higher loading capacity" due to A/C and auto transmission. I will keep these for now, though I may have to cut 1/2 a winding to get something comparable to the "113 321 08 04" to maintain proper ride height the day when I take out the A/C, fit a manual transmission and transfer the battery in the space behind the passenger seat (a small "Braille" dry cell battery fitted horizontally under the cover).
Regarding changing the front sway bar: Any of the 108 and 109 bars will fit, however there will be some interference with the weld flange. I fitted a 300SEL 25.5 mm bar on my vintage race car along with urethane bushings and it improved handling greatly. I also installed shorter and higher spring rate coil springs from Hypercoil. Of course the biggest single improvement came from custom made dual adjustable Konii shocks from Truesports Racing. These changes were made for a cae that would be vintage raced, not a street car. I would replace the tired shocks and any worn bushings first.
I measured the diameter of my sway bar and it is 20 mm. I'm going to replace it with a 23.5 mm out of a W108 4.5. I compared the shapes with the one on my coupe and indeed the Pagoda one is curved on the sides. Do you mean the sedan sway bar will interfere with the weld flange at the bottom of the front rails? How did you go about that? Did you grind the weld flange as needed or did you put some spacers in front ala 6.3?
I'm also planning to fit poly bushings for the rear trail arms, front axle spring leafs and sway bar from Coxracing. I will need to fit some 6.3 front axle spring leafs which are shorter to preserve caster as the Coxracing bushings do not reproduce the offset in the front axle bushings. I know I will loose a bit of smoothness in the ride as all tarmac imperfection are more directly transmitted into the car, but I did this on my Coupe and precision at higher speed is greatly improved. Another improvement I did on my Coupe that I will do here is to stiffen the rear axle cross strut, by compressing the rubber buffers more. I did this by introducing some thick washers behind the inner pot as the w/shop manual calls it (that big concave flange or washer) and by replacing the outer pot by an inner one (bigger diameter of the center hole) so that it can go over the hedge of the strut. Again thick washers on the outer side and tighten the nut as much as you can. Adjustment of the rear axle centering then has to be controlled. This has eliminated a lot of lateral play in the rear axle of my Coupe and is a great improvement in tight corners especially on degraded tarmac. The back of the car just stays firmly in line instead of "tailing" as it was doing before. I think this will be an even greater improvement on the Pagoda given that its shorter wheelbase amplifies tailing due to rear axle lateral movement.
For the shocks I'm tempted to go with stock four strips Bilsteins for now. Reason is that I looked into Konis for my coupe and by doing quite a lot of reading I discovered that the characteristics of a shock (compression and rebound) is closely matched to the rating of the spring it works with. Going away from that hampers that relation and results are not good unless you really know what you're doing. I'm not qualified enough to determine what adjustment is best. Here W113SL could share his experience with his custom made dual adjustable Koni shocks and the way he determined what compression and rebound adjustments were needed. I tried to find out how this was done on the net but I was not successful.
I also scored a set of four 14 x 6 light W123 300D aluminum wheels that take the hubcap. The spare wheel will be a 14 x 5.5 as I couldn't get a fifth one of the others. This will take a good 50 lbs away from the car and reduce un-sprung weight. But most importantly it will reduce rotation weight by quite a bit. I've read that any lb saved from rotation weight is equivalent to up to 8 or 9 lbs taken off the car. I already have a set on my coupe and I could really tell the difference.
I can't answer any of your questions but it seems like you're going to get your car sorted out soon enough. Does this mean we will be driving our brown babies out to PUB this summer?
I think the car will definitely be able to drive up there this summer as it already drives quite well. It may not have gotten all the improvements I've just described already as I need to finish the engine transplant on my coupe first.
I'm taking the Pagoda to inspection in the coming days. BTW, does anybody know if they check emissions on a 01/71 car in Washington DC? I was unable to find the info on the DMV website.
Thanks all for the help!