Rear main seal failure/or rear gasket (to fix that engine has to be removed).
Most likely is valve cover gasket. they are leaking on the block (under the intake manifold/ between heads), but the block has 2 draining hols at the rear, which will fool a rear seal failure.
In pic attached the draining holes are clogged. One draining hole is where the yellow ring is.
JOY = BMW
Last edited by joyism5; 10-08-2011 at 06:50 AM.