Hi, Just a quick thought...
The 2.5 diesel engine is pretty unreliable.. So was thinking would the later 2003 2.5 6 cylinder engine be any better and more to the point, would it fit into the p38?
a year an half putting petrol in a diesel?the wife put petrol in it for a year and a 1/2 and i have abused it on London roads, but then consider its pulling near 1 1/2 ton and you can then understand why, but they can be chipped inter-coolers put in and tweaked, you will then se a marked improvement in them
The useing oil, poor performance and crap starting may be related, i have a bmw325 (same one as the p38) engine in my clasisic and had the same problems.
The engine breather exits in to the air filter housing and then on to the turbo.Because of the way the oil is pumped up in the rocker cover it allows some of it to be drawn out of the breather pipe down to the turbo under acceleration, its worse with a cloged air filter . This then collects in the intercooler( if you have one) or the inlet manafold. Eventually it get to the heater plugs and kills them or runs though open valves overnight.
Thers a number of work arounds on bmw forums to fit breathers that vent to the engin bay.
All i did was strip it and clean everything on the induction side and change the air filter. the improvment was very noticeable and after a few day the starting improved.
The thing is, these are oldish cars now, you will get problems, and when it has been in the hands of 3 or 4 owners, you'll find a lack of service and generally the whole thing has been neglected due mainly to the cost of fixing these things, you have to ask yourself the question when buying a car that's for sale, why is this person selling it, they wont tell you its having trouble, they will say "well im getting a company car so i don't need this one now, but it drives like a dream" then you'll hear there sigh of relief as you walk away, with your hard earned £££ in there sweaty mitts, and the nightmare to come, and more of your hard earned £££ just whithering away, but this could be said for any top of the range car, parts are expensive, you pay for a top car, then you pay the price in parts for it too
Tappets?