cool that is a big help! I will do a little investigating. I think I need a beefier jack and jack stands, though. So it sounds like it is likely to be one of three possibilities:

1) rear main seal
2) transmission pan gasket
3) torque converter seal (or is this the rear main seal?)

I would imagine these parts are inexpensive. Any idea what the ballpark labor hours on each of these items?

Rear main seal is at the rear of the engine, behind the flywheel.

You shouldn't even need a jack for the trans pan gasket. The X5 sits high enough off the ground. If you feel you need to raise the vehicle use ramps..they're much easier to use and cheaper (look at the 3.0i oil change on the front page). The gasket should take less than an hour.

Tq converter seal: you'll easily get charged for 7+ hrs labor. Def not a diy job.

I don't think it's the pan, looks like its coming from right above the big black bar that runs across. It is dripping from there as you can see. So I take it this is the torque converter gasket that is leaking, then?

http://we350z.com/cpg/albums/userpic...l_IMGP0309.jpg

http://we350z.com/cpg/albums/userpic...l_IMGP0314.jpg

http://we350z.com/cpg/albums/userpic...l_IMGP0320.jpg

http://we350z.com/cpg/albums/userpic...l_IMGP0325.jpg

http://we350z.com/cpg/albums/userpic...l_IMGP0396.jpg

I can't tell from those pics. Is it from the area where the trans meets the engine?

I had a small leak on my 2001 4.4i at about 64,000 miles which BMW fixed under warranty (even though the vehicle was out of warranty). The leak was from the "torque converter radial seal" and manifested from the black rubber "plug/cover" which appears in your photos.

NOTE: The fluid in the transmission is NOT RED in color but a pale straw color high $$$$ synthetic fluid (due to wear metals used fluid will appear grayish). If the fluid is in fact red in color then the WRONG fluid is in the transmission and you've got another BIG problem altogether.

The repair involves R&R of the transmission (about $1,300) and torque converter, removing the torque converter from the front of the transmission (which is NOT invasive to the transmission) to expose the radial seal on the transmission input shaft, replacing the seal (about $35 in parts).

Again, BMW warrantied my repairs even though the vehicle was out of warranty because it just shouldn't have happened at 64,000 miles. A leak of this kind could be expected around 150,000+ miles and that is why BMW repaired it under warranty.

I don't think it is red now that I look at it on the white cardboard, it looks more gray as you indicated. By R&R do your just mean dropping the transmission so they can remove the torque converter and replace the seal? Also is the $1300 quote from the stealership or an indy mechanic?

So did you contact BMWNA directly about this or go to a dealer? I think I will attempt to go the same route as you.

--Thanks

Just spoke with Bavarian Auto Haus in Reno, NV. They did the inspection on the vehicle. They also confirmed that it is the front seal (torque converter) gasket seal that is leaking :( They quoted about 9-10 hours @ $90/hr. plus $35 for the part. So thats $800-$900 indy rate. I asked him if he thought that was abnormal for a car with this mileage to have this issue and he reponded saying that age is more of an issue at this point but that it still is not really "typical". BMWNA will be getting a call from me shortly.

Yes, i think so, there is a long black bar running across (i assume to protect the housing) which lines up roughly with the back of the front wheels (going towards the rear of the car)

Sent in my request to BMWNA, we'll see how it goes. Thanks everyone for the help!

I just saw the pics, I had the same exact leak you have and I also thought it was the rear main seal or my tranny leaking, but it wasn't, my mech put the truck on the lift and he shined the light underneath the valve covers, sure enough both valve cover gaskets were leaking and one of the crankvent hoses that sit on top of the eng. had a hole on it too causing oil to slide down right onto that same spot you showed on the pic.
If u can slide under the truck and shine the light and look up right under the cover gaskets and ck it out.
Keep us posted.