Enochbell, the adjustment you speak of on the body is for the up and down adjustment of the hood. The lateral adjustment that Paul needs is the hood to hinge adjustment.
Paul, take the grille, battery and air filter assembly out of the car. Then have someone help you hold the hood to the correct location and you lie on the floor with your arm up to the underside of the hood to tighten the 2 10mm bolts holding the hood to each hinge. The battery side is easy to do, but the air filter side will be a bit of a contortionist move. If the gap at the back is still too tight, then the hood release catch in the rear needs to be adjusted.
Walter
1967 220SL-diesel