If it came out of the oil filter housing then it is #2. There was a posting a while ago on someone who had a oil filter housing failure on a 4.8is. He ended up replacing the entire housing as he was worried to death about "what ifs" as there was a lot of conflicting advice being posted and whispering in his ear at the local dealer if I remember correctly.

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2005 X5 4.8IS
The Blue ones are always FASTER....

Current Garage:
2005 X5 4.8is
2002 M5 TiSilver
2003 525iT
1998 528i
Former Garage Stable Highlights
2004 325XiT Sport
1973 De Tomaso Pantera, L Model
1970 Dodge Challenger T/A 4 sp Alpine White
1970 Dodge Challenger T/A 4 sp GoManGo Green
1971 Dart Sport, “Dart Light” package
1969 Road Runner 383
1968 Ply Barracuda 340S FB Sea-foam Green