Wow, didn't expect this thread to still be here. Sorry if I've caused an argument.
Okay, well I've determend that the head gasket is actually fine. What's in the expansion tank is bits of dirt/rust as fas as I can tell. No oil in there at all.
I'm hopfully getting my new pump on Friday. Will fit Monday and let you guys know how that goes.
I checked the rad and it is covered! in thick dirt on the front. This may be the cause to overheating?
Sorry about the whole long post guys.
Car: BMW 525iA.
Engine: M20.
Trans: Auto.
Year: 1990.
Location: Durban, South Africa.