Leaky seal somewhere near the diff

[Jay 535i]

its the side seal, easy fix too. Unbolt the shaft at the differential and slide out of the way, pull the output flange, pry the seal out, pull the little clip and replace that, the seal and the flange, bolt together and done.
parts 6 & 10 in the following.

http://www.realoem.com/bmw/showparts...73&hg=33&fg=10

Excellent response. Thanks, Jeff.

[Blitzkrieg Bob]

[http://www.bmwe34.net/e34main/mainte...tial_seals.asp

$16.00 to $20.00 in parts

A couple of quarts on Mobile 1 diff oil for good luck

Don't foget the pump thingy for the oil....it's worth it.