Have a 2000 Mercedes ML 320 with a Airbag light on; they had inadvertently set the SRS light while replacing the doors. I went in to reset, but could not communicate with the Airbag module (assuming its under Airbag module rather than the AAM or EAM). Not sure whether the problem was the Launch or the vehilce, I decided to "set" the Airbag light on a 2001 ML55 in our shop to "test" theory. YIKES, now the light won't reset on the ML55, sooooo, I figure its either my lack of knowledge on how to reset the SRS on these vehicles OR Launch simply won't do the trick. Anybody "been there, done that" ?

PS: I am using the CAN II connector at the 16 pin DLC under steering wheel and version 34.05 software.

I believe you should be using the -16C on that unit. Most use CanbusII from July 03 onward.

Thanks for quick reply! 
You are a %100 correct Coyote! Richmond ( my tech support guy) asked about using the OBD II 16 C and I told him that it would not work on Mercedes and that I had always used CAN BUS in the past. Well, he tried it anyways after I had aleady posted for help and VIOLA! it got in fine to the Airbag computer, read out and cleared the faults. And as well, when he ran a short list report, the OBDII 16C shows up 4 more modules than using the Can Bus II. Morale of the story, just because the connector is new and cost most, doesn't necessarily mean its the be all and end all. I wonder now in retrospect how many modules I have missed in past short test scans in view of my false assumpton that the CAN BUS was the exclusive connector.