I've got the same problem on my 1991 318is m42. I'd love to get an idiots brief on the e30-m42 charging system and possible sore spots.
I'm wondering if these alternators have built in regulators? I thought they did. If not, where does the regulator live? RealOEM lists a diode board for the alternator @ ~$180, but I suppose that could be for only the rectifier function, not the regulator.
I pulled the alternator and had it tested a automotive chain store and tested fine. Battery *could* be the problem.... but has kept the car running and starting... for a while.. just at low voltage. (Now that i think of It I'll try swapping a know good batt.. ) I wouldn't have known there was a problem, except the all the dash warning lights went nuts.
The saga continues.