Damn, is there some definitive way I can tell just from the fluid!? It does appear to be light grey and not dark, and the indy mech wrote it up as the trans front seal. I already sent an email to BMWNA about the trans leak too.

I'm not exactly sure where to look for the valve cover gasket leak. Would anyone happen to have a picture of the engine out of the car? Are the PCV's on the side of the upper plenum or what?

Haven't you had two mechanics so far tell you it's the tq converter seal?

One. And I do not know them personally, there was a guy who had the vehicle inspected locally (then Reno, NV) because he was considering purchasing it. I called and spoke with someone at the shop today, though the tech that actually looked at the car was not available. They told me the writeup was for the front transmission seal. I guess I am not really skeptical but I would like to validate to myself the problem one way or another because I thought for sure it was the tq seal but now I am not so sure. Basically I would like to get a definitive answer here.

Definitive answer: It's the torque converter radial seal. As I said before, I witnessed my removed transmission and discussed the matter with the mechanic and BMW USA/NA tech rep. In my previous note I inserted a link to a note I wrote giving praise / accolades to all concerned. In that note I stated that I had been a Lubrication Engineer (with Texaco Lubricants Co.) so I know of what I speak.

Regarding a valve cover leak, you MAY be able to see some seepage by viewing the engine from the top SIDES. The valve covers are the light grayish/yellowish (due to paint color change with heat/age) items on either side of the engine (the passenger side has the oil fill cap). Using a flashlight look along the interface where the cover meets the sengine (cylinder head) to see if engine oil has seeped down along the head. You can expect some minimal seepage but if it is very fluid/oily you MAY need to have it corrected .......... first step would be to make sure the valve cover bolts are all tight.

Cool, I think you are correct. I already cryed wolf to BMWNA yesterday. I am going to go to AutoZone to pick up some wheel ramps since I need them anyway, gonna take a look at the valve covers just for good measure.

Interesting info... My X5 3.0 had a small red fluid leak yesterday and I was thinking it was tranny fluid also. So is it confirmed that the red fluid is power steering fluid?

I can't really speak to the transmission of the X5 3.0. I believe that BMW sourced it from General Motors and if that is so GM uses the red dyed Dexron fluid. My 2001 X5 4.4i has a German ZF transmission which uses a special synthethc fluid which is pale straw in color and VERY HIGH $$$.

If you leak is coming from the front of the engine it could well be power steering fluid since the P/S pump is located up front, BUT the steering rack is located toward the rear of the engine so a leak in it could be confused with a transmission leak.

wow 3 duplicate posts :) My fluid is def grey now that i see it dripped on white cardboard. I think the finsh on my concrete made it look red. Upon running my fingers over it, it just looks kinda clear on my skin. Shit I dunno, I am ham boned right now lol.

ok finally got my rhino ramp 8000's today and got under the X5 to take a look to check for valve cover gasket leak. If I am looking at the right thing (directly above the header/downpipe/pre-cats which connects to the cats) they appear to be dry as a bone.

I can say with almost 100% certainty that this really is a front seal/torque converter leak. Hopefully BMWNA will make good on the good will program deal. I will keep you all posted.

Hopefuly BmwNa will help you out, I was hoping it was your valve covers as it is cheaper to fix than the main seal, good luck.