Hey Waldo,
If it's leaking towards the front passenger side of the engine it is probably a bad timing case profile gasket. Very common problem on the M42. Mine just blew last week and I spent 14 hours taking off the head and replacing the gasket. Local shop wanted $2,000 to do the work and extra if they had to replace other parts.
Parts are about $200, mostly gaskets, from Pelican. If you do it yourself you will need ...
head gasket set
set of torx head bolts
new exhaust manifold studs and copper nuts
some fuel line hose (1 foot)
some vacuum hose (2 feet)
some RTV sealant
Do a search and you will find the relevant links like ...
http://timthurber.com/tcpg.htmhttp://www.pelicanparts.com/bmw/techarticles/101-Projects-17-Head-Gasket/101-Projects-17-Head-Gasket.htmand of course the Bentley manual.
Takes about 8 to 10 hours to take it apart and clean and prep the parts.
Takes about 4 to 6 hours to put it back together.
It comes apart pretty easily except for the exhaust manifold, that is a B*H, both getting out the studs and then getting it back together. Probably took over an hour to get it off and 1 1/2 getting it back on.
Mark all of your hoses and wiring connectors with masking tape with where they go. Use a digital camera to document what you took off.
I just finished mine today and I just started it up. Runs terrible, hope its just the computer trying to relearn the settings.
Good luck Dude!