Common advice to all new M30 owners is to open up the valve cover, adjust the valves, and replace the banjo bolts. Sound may be injectors or valves, and M30's need valve adjustments every 15k miles at the minimum, more often if you like the smell of Mobile 1 on your hands
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Bruno's site (http://www.bmwe34.net/) has all the info you will need on both issues. Valves are notoriously loud on M30's as Lowell mentioned, as are injectors. You can use a mechanic's stethoscope to listen to the injectors and see if that is it.
Banjo bolts are in there real loose (torque spec is a few inch lbs I think) and they work loose after a while, causing the cam shaft to operate without oil. People sometimes buy a 535, take off the VC and see them laying around in the valve area! Not good.
Don Gale (http://www.nmia.com/~dgnrg/page_2.htm) sells a really cool upgrade for this that will keep them in place for ever.
HTH
- Robin
Robin
72 Chevy K10
01 E39 M5