OK, I'll be honest, I'm with you on C63 but calling Hammer a clunker. 
Bilal, Did you know, it was W201 to be named Hammer (infamous baby hammer based on W201) 'officialy' before they used the same for W124? And before this, 560 SEC was called 'Hammer' by auto journalist and drivers during a 0-150-0 test with Countach, 288 GTO etc.
[/quote]
Couple of forums online called it the Hammer because of the sheer hammering AMG had to do to get the engine inside a 200E!
BTW which W201 did they call the Hammer?
I always was confused about the whole hammer thing. The 560SEC Widebody is also referred to as the hammer, as is the 300E, 300CE, and the 300TE, and apparently now a W201 is as well!
I think most people use the term hammer synonymously with the W124. At least that's what I've seen.