Hey guys sorry for posting this again but it wouldn't allow me to make another post on the previous thread. (Look to the previous thread named e34 problem to know what I'm talking about) Anyway, I took your advice and went straight for the driveshaft. When I got under the car, sure enough there was a problem. Is this the guibo you guys were talking about? (Whatever it is, it's going to need replacing immedialty because it's shredded beyond recognition- I'm taking the car in on Thursday). Any ideas on what could have caused this?

http://img345.imageshack.us/img345/1920/20050710image00773ow.jpg

Yep, that (once) looked like it. If I recall correctly, the later guibos have a metal clip that goes around them to preload them. It looks like your clip came off, and the guibo, without the preload, pretty much exploded. And most assuredly, a new guibo is in order. As in, right now. Otherwise, the foreward driveshaft (before the driveshaft bearing ) will come off the ruined guibo or the transmission will rip the last vestiges of the guibo, causing the driveshaft to drop on the ground or go into the car, ripping your legs off. I'd say that is a very bad thing. So, yeah, get it fixed. You should really only need the replaement guibo and 6 guibo bolts/nuts, assuming you haven't bunged up your driveshaft.

What are the fibers though? I thought the guibo was simply a piece of rubber with metal inserts, no?

Did something get caught in there?

Thanks so much for the info. No, i don't think anything got caught in there, I think the guibo is just shredded up. Any idea how much this is going to cost me? Thanks for your time and comments.

just for clarification, that picture is right behind the transmission, yes? So if you look up, you are looking at either the driver's or passenger's floorpan, right? If so, then it has to be te guibo, as it is the thing that connects the driveshaft and transmission. it looks like a rubber benzene ring.

http://www.realoem.com/bmw/showparts.do?model=HE23&mospid=47406&btnr=26_0094&hg=26&fg=10

In the picture, it should be part #2.
http://www.realoem.com/bmw/diagrams/w/132.png

What are the fibers though? I thought the guibo was simply a piece of rubber with metal inserts, no?
The guibo is a fabric reinforced sythentic rubber structure. That's exactly what they look like when they fail.
[QUOTEDid something get caught in there?[/QUOTE]
I suppose that's possible, but as I said that's the usual failure mode.