I just took a piece of the old fabric covered hose down to the local
NAPA auto parts store here in the US.  They matched it to a plastic
hose that's fuel rated.  It looks very similar to soft, clear vinyl
water tubing, except it's a yellowish color.   Replaced mine about 5
years ago and no leaks since.  The std ones from the stealership all
weaped after a few years.  It's really amazing that MB can't just get a
hose that doesn't leak, isn't it?  Especially given that they charge
many times what it will cost for the hose at NAPA.

On my car, the last piece is a short stub that has an end sealed off.
For that, I put silicone caulk in about 1/2" of the end and it's worked
fine.  A better way might be to find an appropriate size plug.

I just changed it... it is 1/8" ID... $15 a feet at MB dealer. I am not sure
if these MB hose are biodiesel grade... you need to ask...

Otherwise, Viton hose is the only one I know that are biodiesel compatible.
and much cheaper.

http://www.greaseworks.org/viton