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Throw out bearing help?

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Hey guys. Well, I have been having some clutch problems. When I push the clutch in, it squeals, vibrates, and smells like something is burning. I'm pretty sure that this problem is the throw out bearing (clutch release bearing) being worn or damaged, and it is possibly chewing at the bell housing. Is this correct?

Is it possible to just replace the bearing and bell housing, or do I need to replace the whole clutch? I am trying to fix the car so that I can sell it for a decent amount. I have a 1993 318is. Is this a relatively easy replacement? I will be buying a chilton's manual to help me do it. Thanks.
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