Not really a how-to or guide just what has happenned, and what I think may have led to it.
First off, based on what Bmwman91 and my discussion, I think it is safe to say the M42 pickup screen is worthless. If something gets into your pan, it will end up in your pump. Second thing to remember is that the pump housing on an M42 is aluminum, THIN aluminum. The shitty part is that it is located against the block. Dealer replacement parts will run nearly $1000 by the time you are done.
What you see below is what happens when the timing chain decides it is time to start falling apart, yet not fail entirely. The rollers go bad, end up in the pan, and then get sucked up, the result is what you see below.
Something that was found along with this though, is that all of the sprockets were extremely sharp and worn.
While Bmwman91 and I are not sure (he has doubts), there is a possibility that replacing the timing chain tensioner contributes to this problem. Reason being, both of us had this happen, and had replaced the tensioner a few thousand miles before (probably between 3-5k). Which is probably enough time under added tension that the chain finally shredded apart enough to cause problems. Though we are not sure. Any input form others woudl be helpfull. The bad part is that it could have happenned regardless due to age or stress, plus not changing the tensioner is just as bad possibly..
My best recomendation is change your chain at 120k, I have heard that BMW recomends it at this mileage. If you must do the tensioner, I would recomend pulling teh cam gear cover (very easily done) and popping teh tensioner open before starting the car, rather than use the "rev to 3000 for 30 secnd method". During that 30 seconds, your chain is slapping around an awefull lot.
Also, change your chain. While a pain in the ass, it is FAR, FAR easier than what I now have to do.
What is involved in the T-chain (basic overview, yes, it is a lot):
Drain oil, drain coolant, pull the hood off, remove rad hoses and heater return hose, remove radiator, remove shroud. Remove fan, clutch, all belts. Remove the A/C pump and mounting bracket. Pull the lower and upper pansd, then pull the thermostat and housing, (you may get away without pulling the water pump, but you will have to pull the pulley) valve cover, upper t-chain/cam cover, timing sensor, lower crank pulleys, and lower t-chain cover. The pull the tensioner, upper chain guide, and idler gear. You should be able to pull the chain but you may want to remove some guides to make things easier. I recomend replacing the cam gears, (take a picture for proper bolt placement), idler gear, and crank gear along with the chain otherwise you may end up doing it again sometimes in the future.
Now if you are unlucky and wait too long...
You get to get a ride home and then pull the oil pump/front engine assembly, which you see below. This means pulling the water pump (for sure) as well as dealing with the profile gasket, and possibly the head if you do not figure out how to do it without. Bmwman91 did it without, and I am planning to.
This chunk of aluminum is VERY expensive, and is a shitty design.
If you have to do this, buy another motor and cannibalize parts.
What it should look like.

What mine looks like. Notice the crack, about 3-4inches long! and notice the lower chain guide, the plastic is completely gone from the mounting post. Looks like there may be a crack on the other side of teh housing as well.
