I'm so SORRY for you sheepdog. You've helped us out so much in the past and now this happens to you. So sorry man.
This was right at the beginning of this site actually, and not all of this happened to me (though I have certainly paid my dues for this site). The first indicator of a major problem was was Febi Guibo's car as he was driving to Metric Mechanic for his stroker engine. He did not get half way before pan gasket shift happened. We dissected his motor at Metric Mechanic and documented it.
After seeing his, and knowing BMWman91 had his motor die from pump explosion a bit earlier (at the time we all thought it was a fluke), we started putting things together. I had planned on pulling my pan over the weekend when mine did the same as Bmwman91's car did 3 days before I dropped it.
2 different problems, same cause.
All of us who had this stuff happen are responsible for you getting this info, I just happened to be the one who documented it and you could say wrong (or right) place, right time I guess. Until we had a home for this engine, all information of other people having this issue was pretty much lost on other forums due to the mass of 325 owners and issues. Same with most of the other M42 specific info.
By the way, the M42 is not the only BMW engine with this problem. At least one 5 series engine has this issue big time however only one or 2 places will discuss it.
By the way, would I be correct in stating to M42 boy that the part being aluminum does give a bit, so any warpage wouldn't most likely be much of a problem. I agree sheepdog, that would be an extreme amount of heat to warp the pan.
Which part warping? The pan? The pan can give some, the timing chain housing can definitely warp as well. How much of a problem either is, could be debated. I would think pan warpage is not an issue, but the timing chain housing, that could be an issue. It has pressurized oil flowing through it and a spinning oil pump.
One other question about noise. How do I know it's not the fan or fan bearing that I'm hearing and it's the chain? When changing the chain is there anything really special you have to do (other than remove the parts in front of the housing). Would you recommend replacing the sprocket, chain and tensioner?
Take a long screwdriver, and place the point against the timing chain section the other against your ear, may want to try the tensioner. Then repeat on the valve cover. You should be able to tell where it is coming from that way.