m20 e34s can be a miserable bitch to bleed, i've seen more then one person roast a motor trying, remove the thermostat and drill a hole about 1/8" where the arrow is and reinstall with the hole in the 12:00 position, this will let the cooling system burp and allow the block and head to fill with water, open bleed screw and fill tank till it flows water then close, squeeze the hoses and open the bleeder and see if any more air comes out, then try running it
all america wants is cold beer warm cat and a place to take a poop with a door on it