[jjrichar]

Have a look at the link below. When I initially looked at this engine prior to pulling it apart, it looked like the OFHG was leaking. It was only after digging a little deeper that I found that this was not the case, it was the oil separator. The tell tale waffle iron spot can get oil from either the OFH or the oil separator. Scroll down and have a look at the pictures, and you will see what I mean. This may be your problem.


http://forum.e46fanatics.com/showthread.php?t=900804

 

[jjrichar]

I don't have any more pictures, but look again at the photos in the thread. You will notice that when the OFH is removed, the waffle iron beneath (that isn't visible untile you remove the OFH) is perfectly clean. Rearwards of this you can see all the oil staining. This to me shows that the OFHG is good. To find out prior to pulling of the OFH, I would look at the forward part of the oil pan (just behind the power steering pump, and directly below the OFH). If there is oil dripping down there, the OFH is the problem. If it is further back, then the oil separator is most likely the culprit. Jack the car up and have a good look underneath.

 

[jjrichar]

mikeetastic, sorry I didn't read your post properly. There are a whole lot of photos for the oil separator in the thread I put up on that. Go to the link below, and then click on the thread for the oil separator.

http://forum.e46fanatics.com/showthread.php?t=899347