Yes, they are water-cooled. I strongly suggest having yours rebuilt instead of buying a new one (much cheaper) -- mine was totally seized when I finally brought it in and it only cost $200 to rebuild.
The basic steps are: remove the fan and fan shroud, remove the belts, remove the deflection pulley in front of the alternator (buy a set of crows' foot wrenches for this part and save yourself a ton of frustration --> see here), remove the alternator.
Black 2007 Alpina B7
Tension strut bushings
White 2007 Alpina B7
Supercharger clutch/bearings, replaced exhaust valve/pulled head, sunroof seal, 6000K angel eyes
Black 2002 BMW 745Li (sold)
KW v3's, blue angel eyes, 8000K headlights & HID fogs, rebuilt alternator & mounting bracket gasket, sunroof seal, CCVs, plugs, sway bar bushings, timing & valve cover gaskets, valve stem seals, guibo joint, mechatronic sealing sleeve, trans fluid, sanded headlights...
Last edited by Keif; 11-09-2009 at 09:40 PM.