As some of you may know, my 2001 3.0, Sport, had a complete front differential failure. It totally lunched itself and was replaced to the tune of about $3000 with labor.

BMW says it is a non serviceable item. There was plenty of lube in there- but a bearing siezed and things resulted- like ripping off the teeth in about 1/2 the diameter of one of the shafts.

Service man says the new unit recommends a totally different lubricant... wonder if they know something?

Since it was in the shop we did the latest Transmission and Engine software update. All I can say is this made a huge difference in the performance and driving experience. Greatly improved the smoothness. Engine feels like it has much more power.

I wonder what they changed? This update was the one released I think at the end of January 07.