Early 540i engine problems?

[Chambolle@xxxxxxx]

A friend has finally decided to sell his humongous Chevrolet SUV and get a 
real car.  He is looking at getting a low mileage 97 or 98 540i.  I vaguely 
recall there was a major problem with the V-8 engines in the first model year 
or two because crappy US fuel was eating the aluminum engine components.  Can 
someone fill me in on what the problem was, what the "fix" was, and what to 
look out for when buying a used 540i, including this engine problem but also 
any other major model glitches that a wary buyer should know about?  Advice 
much appreciated.  I want this guy to get a good car so he'll become a 
dedicated BMW owner and nix the Tahoes and Suburbans from here on out.

chambolle@domain.elided
95 M3, arrest me red and 1976 2002, ditto.

------------------------------