'06 4.4i grinding noise from engine bay

[audiophool]

Been away a while - my 3.0 is still running well.

Buddy of mine has a 03/06 build X5 4.4 with the N62 and ~140,000 miles. He brought it to me complaining of a nasty grinding noise from the engine. As soon as he opened the hood and started it I was thinking $$. Looked closer and saw the water pump pulley moving in and out about 1/8" as it rotated. Put a probe on the pump housing and the grinding noise was surely coming from there.

He wants me to replace the pump. Any tips/tricks?

Also, he's going through a lot of oil - about a quart every 700-1000 miles. Valve stem seals? He says he gets a puff of blue when taking off after idling for a while at a light.