After more reading about the newspaper test. I may have done it incorrectly.
I had a wad of rolled up paper and stopped the fan at the end of the blades.
It seems that a single rolled sheet should be used and pressure at the hub.
The fan does not stop but slows and then picks up speed after release.
That seems to indicate the clutch is ok.
According to my reading about the fan clutch:
A bad fan clutch would cause an over heat at idle.
The fan does not play a big roll in cooling the engine once the vehicle is moving and especially at higher speeds.
Since I only over heat once I am moving, I assume the fan is good.
I started the car again today;
No noise. no white vapor.
5 min. needle into blue, top hose warm
15 min. needle just below 1/2, some visible white vapor from exhaust.
20 min. needle at 1/2, some visible smoke. Bottom hose warm.
"Ticking" noise begins. I believe it is the valves. They quiet down when rpms are raised.
run for another 10 minutes and take out for a ride:
needle creeps up near 3/4 and holds for a few minutes and then creeps to near Red.
I pull over and needle comes down a bit.
I drive home and let idle, temp drops to 3/4. NO white vapor is visible.
I turn off engine and temp comes down to just above 1/2 in a few minutes.
I see no leaks.
I will allow to cool and see f I am still getting bubbles when bleeding.
I will allow the BMW mechanic to do a diagnostic on Monday.