Well, more than a year later and I'm finding out even more wrong with this car.
Lost my job in January '09, and garaged the car in March '09 because of growing oil leak. Haven't gotten a really good chance to work on her since then, but now that I'm getting the opportunity to dig into her, geebus. Take my advice, ALWAYS use a mechanic to inspect a used car before buying it. I bought this car from a member on this forums that I thought I could trust but apparently he chose to neglect to mention to me two critical things:
1) The oil FILTER housing was damaged/cracked and sealed with JB Weld (both inside and out). How the heck the oil filter housing got damaged this way eludes me but only makes me worry the condition of everything else. The grime and grit on the engine covered up this repair and didn't make it obvious until I was tracking down an oil leak and noticed it WEEPING from the now-broken JB Weld fix. Now I'm tracking down a replacement housing to replace this damaged one.
2) The lower oil pan was cracked by the two bolts that bolt into the rear of the engine. It was rewelded, nice. BUT, it was rewelded in such a way that the two rear bolts were UNUSABLE since they filled in the holes. So whomever did this repair decided to bolt up the oil pan SANS those two bolts. Oh, and they didn't put back in a gasket. They went in with overkill with gasket maker. Cleaning that up was a chore since it got into everywhere. Now that explains why the transmission was covered in oil as well. Had to drill out new holes in the oil pan in order to properly bolt the oil pan back up.
Oh, and then there's the nagging and odd things like there being fog lights in the front but the wire harness cut at the fog lights and no button in the dash. Huh?
So yeah, I'm bitter right now. The guy I bought this car from will never see my business ever again, nor will any of my friends whom I have told what I have found (and they themselves have seen wrong) with this car. But, the only person really to blame is I for not taking it to a mechanic (or a reputable BMW shop) before purchasing it to inspect the car.
My advice for anybody out there that's looking for a used E30? Always use a mechanic before buying. If the seller balks, walk away. Quickly. Or you end up in my situation and going to have to spend a lot more money getting the car operational and usable.