In the interest of following up, here is an update to my hydrolock problem...

The shop started the car and it died due to residual oil in the intake manifold. Being cautious (scared), they removed the spark plugs and saw oil on the tips. Their conclusion - dead engine. Morons. They called around for engine quotes, new and used, and came back to me with $13K for a used engine installed and $18K for a rebuilt shortblock from BMW installed. Thieving morons.

After a minor heart attack, I had the car towed back home. I ordered the oil separator parts and replaced it myself and the car now starts and drives just fine... with one catch. There is a tapping noise that seems to be coming from the valve cover towards the front of the engine. It does not go away when the engine is warm and is dependent on engine RPM. My first thought was a lifter, but I'm not yet sure if this is a lifter tap or something more $erious - rod or main bearing.

I've already flushed the oil ssytem and put in fresh oil, which helped quiet the noise a bit, but it is still present. I'm going to try a bottle of Rislone to see if it helps stop the tapping. I've heard it works wonders for lifters...if this is just a lifter noise.

Any comments/suggestions are welcomed.