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Just another common problem w/ the M60/M62/N62/S62. Great writeups on e38.org BMW 7-series information and links for just about everything you could or should do since we've shared different variations of this same physical block for over 10yrs.
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The valve cover gasket is an easy DIY and only $30 some dollars for the gasket and a couple of hours work. But if you don't install it right, without the gasket sealer, it will continue to leak and be extremely annoying. Understand the frustration, but well worth the fix for the drive feeling.
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This week I replaced my valve cover gaskets for the first time @ 93K. Did a valley pan @ 59K but didn't replace valve cover gaskets at that time, they started a slow leak at 65K. My water pump started leaking a couple of weeks ago, so I thought this would be a good time to restore the cooling system and upper timing chain covers. Replaced all hoses and belts, gaskets and o'rings. Everything but the radiator. It looks OK for now. Not too bad for 93K. Having this done, it should take me another 90K. A GREAT vehicle. PAID FOR, so I don't mind keeping it in top shape. The alternative? $75K+. Forget it. Just wish I could get the same performance from the tires. 18k and they need replacing (20" Michelin Diamaris). LOL.
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