Check the double hoses coming off the firewall on driver's side... These are the heater core hoses. Sometimes, if they are seeping, the drips or leaks will be UNDER the hoses, which will be very hard to see from ABOVE the engine bay. You will need to take your hand/fingers and wipe under the hoses, if you have any blue (BMW coolant) or green (standard coolant) on your hands or fingers, then you have a leak. First try tightening up the hose clamps, rinse everything and keep monitoring.
IF the leak persists, then you have an issue w/ the heater core as noted a few times in this thread.
The other areas to be concerned w/ as far as leaks:
head gasket - sometimes they can fail at any point around the perimeter of the head, including the back part of the head. Get the car safely on ramps and using a light, shine from the bottom up all around the base of the head - you should be able to spot any leaks OR coolant staining on/along the base of the head or sides of the block in this manner.
engine freeze plugs - check for coolant staining
engine drain plusg - again, check for coolant staining
if your M42 is stock and still retains all of the medusa of factory hosing/vacuum lines under and around the intakes, you will need to throughly inspect these hoses - especially the hoses that carry coolant... ANY ONE of those hoses can leak. Also be sure to check the nipples that go INTO the heads to which those hoses attach to as well - those factory nipples are KNOWN for corroding and rotting out, which will also be a source of a coolant leak.
heater core - pull up the center console and you will be able to see the core. The core can leak from the center core itself due to age, corrosion, etc. It can leak from the primary tubes that go through the firewall, OR it can also leak from the valve that is attached to it. Sometimes a core will not emit the coolant odor, so you can't rely on just smell alone... Pull the center console and EXAMINE the core physically from all sides and more than likely, you will see exterior coolant staining on the core itself OR along the trans tunnel under the carpet.