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<E30> Head Bolts + Oil/Water



During my replacement of the dreaded hex head bolts with Torx bolts, I 
noticed there was a lot of oil on a few of the bolts at the threaded end 
and small water droplets on two other at the center of the bolt.  One of 
the "water" bolts was on the exhaust side.  Is it normal for the bolts 
to have oil at the end of the threads?  I trust the water droplets are a 
bad sign; maybe a bad head gasket.  I notice no blue or white smoke from 
the exhaust at any time.

Comments on the source of the oil and water?  Is the water just 
condensation or?  Are there known problems with the eta engine in this 
area?

Thanks in advance for the advise.

Mike -- 1986 325ea 163K Sharked

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