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E36 Brakes

Hi Guys

I will be doing a brake fluid change on my baby ('92 320 e36) as well as
put some anti-squeak goo on the new rear pads.  I'm sure this is still
original fluid as it looks very dirty.  Anything I should look out for?
(I do have the Haynes to guide me).  Is it just a matter of pumping the
pedal until all the fluid runs out?  or is it not that simple?

Next will be the tranny fluid change as I work my way thru inspection
II.  

Also OBC intermittently tells me that my numberplate light fails even
though both are on!?  This sometimes happens with the brakelight as
well.

TIA
Igshaan

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