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For part of #3, you'll want to watch this video. I did a repair similar to this on my 1998 323i and it worked like a charm. I no longer have to reach back and 'assist' the roof up to clear the opening and closing of the housing cover.


For #1, is it possible something internal like the wheel speed sensor(s) is making contact to a high spot on the hub? You wouldn't be able to see it and couldn't test for it unless it's under full weight. Perhaps pull one at a time with test drives in between to see if the sound changes?
 
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