I think I know what the problem is. I put mobil 1 synthetic gear oil in the tranny and I think the viscosity is too high for the synchronizer to work (my dad had the exact same problem with his miata, which is how I figured it out). I'm ordering some Redline GL-4 and will put it in this weekend, hopefully that should get it working right.
My temp guage, now functioning properly, hovers just below the 1/2 mark. Straight up and down is correct operating temp for most BMW's IMHO. Only problem now is mine takes
forever to reach full operating temp! Not sure why it takes so long to warm up.
As far as the transmission, that definately sounds like a synchro problem. Do a little research or make a few calls to make sure you are putting in the correct fluid. I was under the impression it was Redline MTL or MT-90 that has the friction modifiers to work better with synchros. Mobil 1 actually makes a racing fluid that has the same thing as well. That's what's going in my case once it's all back in the car.
This car is pretty easy to downshift with, but in the meantime, just double-clutch to match the revs in a low gear like that. I had a Porsche 944 that was
impossible for me to get in 2nd on the track with. Part of it was my lack of heel-and-toe skills, and the other I think was a mechanical problem with the clutch and/or transmission. But, it was a very low reduction gear, which didn't help. :rolleyes: