Hi,

The '97 S320 BAS/SRS indicator light in on. What does this indicate & how to resolve?

Two seperate issues on two seperate systems. you need to find out what faults are stored and proceed accordingly. if I had to guess, the most common failures are SRS=passenger seat occupied sensor faulty, BAS=stop lamp switch. No guarantees. Get a real diagnosis from an authorized facility before haphazardly throwing money at it.

Sorry the fault indicator light is BAS/ASR not SRS. Some one suggest for me to drive & brake hard to see if it goes away, other says to try disconnect battery & some say its one of the wheels sensor faulty??

All three of those approachs would be correct on an American car. Not on the MB though. Get the fault codes and we'll proceed accordingly.