jayjay, I don't think you need to worry about it... I think this is a result of it not being installed properly to begin with.

Weasel, thanks for the info on the oring. I don't have access to variety of orings, but I should be able to find some at home hardware store if needed. I had an old 1983 Yamaha Venture 1200 motorcycle that I bought in recent years, and one of the drain plugs had an oring damaged. It was impossible to find the whole plug, but I could find an oring from home hardware store that fit it and worked nicely. I was worried about temperature rating of the oring, but it seemed to work for many months and a subsequent flush without any issues (and that bike particularly ran hot to begin with.) I will monitor the leak and if it continues, I will definitely replace the sensor and/or the hose.

The hose is brownish color, but I am not sure if it is just the detailing shine stuff that dealer had put on it that has changed color or if it is the hose itself. I will look at it closer and if needed, will replace it as well.

Weasel, I must say I enjoy reading your replies to everyone on this board; you are truly one of the best assets this board has to offer. Thanks for your help (to me and others).

I called the dealership earlier today and talked to the service adviser that I always take my cars to (both my wife's 3 series, and this X5.) He told me to bring it in and he will have his shop foreman look into it, and more than likely will take care of it. I will have them check the leak as well, since the leak was not there before (I monitored the coolant level for months without losing any) and is now there after this fan shroud movement. But apparently it could be the oring, so if that is the case, I will take care of it myself.

I will keep you all posted on the progress.