I have had a small leak on my wifes 92 e36 since we got it. It has an M50 non Vanos engine. After some research I found the oil filter housing gasket and profile gasket had gone bad. As you can see they were causing quite a mess. The undercarriage had oil blown all the way to the transmission pan. Big mess. It was only leaving about a drop or 2 a day also.



Here are the bad gaskets. They were flat and hard.



The housing once it was out of the car.




This is the side of my engine where the leak occured. I thought I had an oil pan or valve cover gasket leak at first. This one can trick you.