And I'm wondering why isn't there more people trying to help...
:dunno:
Haven't even opened the hood to check, I was also throwing ideas, but it seems like you've all figured it out for yourself.
You should maybe send out a sample of the sound, plus a picture of the residue, we should be able to pose a diagnostic with this...
:rolleyes:

Sorry, if I sense sarcasm I tend to through it back. I would have posted a sound clip or picture but it was at the dealer by the time I thought of asking around here to see if someone else has had the same issue. Didn't mean to come off as a prick.:banghead:

Good luck. But I have a 3L so not much help here. But is the alternator over on that side. Sounds like a good guess.

I was told that the alternator is cooled by the engine coolant. A real pain....

:wow::wow:
Are you sure about that ?

That's what the recall was, the power steering pump shaft was machined wrong and it may cause to leak? X5's built in the first quarter of this year I think?

Problem resolved, AC compressor went. Being replaced under CPO warranty. While its there, since the dealer is so far from my house, should I have them look at anything else?

OK, this is VERY important.

When the compressor goes out, it generally contaminates the entire AC system- evap valve, lines, condenser and evap are all fouled wit shrapnel. These bits can circulate if not meticulously cleaned out, and cause failures a year, two or three later. The dealer will of course say these subsequent are unrelated to anything they did.

On other cars Ive worked on, there are detailed work instructions (TSBs) on cleaning/flushing the system. Not sure about BMW as Ive (thankfully) not had to get into any of mine.

You can assume the dealer will do the job right...but personally I'd have tried to express my concerns such that the mechanic takes his time and does it right. Not sure how....write up a note on it, have a chat with the actual mechanic, etc.... not pushy or accusatory, 'just have concerns and want to hear what you'll be doing to make sure...'

I asked the service manager about that today and he said that they would go through it thoroughly. I was planning on talking to him or bringing it up with him when I pick it up too. That is a really good point though. Thanks!