Called all the local shops and the labor is outrageous for $60 worth of parts they want $700 in labor. And another $600 to replace a crankshaft seal ($33 part). Any help? Dont feel like spending $1500 right now... or ever

Oil pan gasket is a fair amount of labor - search for the giant oil-pump-nut thread in the E36 M3 forum that details the steps. Power steering hoses replacement is straight-forward - shouldn't need a DIY - but you probably just need to replace the hose clamps, not the hoses.

Funny power steering would be brought up. I just took a picture of this last night:
The only spot on my garage floor seems to be originating from the power steering reservoir. It looks like it's leaking on the bottom of the container, (I guess at the clamp) then running down the hose and drippng off the lower high pressure fitting. That could be misleading.
Does this sound typical?
I've been meaning to change the psteering fluid anyway.
I've read the DIY on this, with the turkey baister method. But what final fluid to most folks use?
Thanks

I've read the DIY on this, with the turkey baister method. But what final fluid to most folks use?
Thanks

ATF

Yep, regular Dexron III ATF is fine. No need for expensive synthetics for PS.

i have the same leakage too, for about 2 years now hahaha, but i just waited til i rebuilt my motor, im almost done putting it ack together, then i'll just replcae all of the hose clamps....the main on is right beneath the resorvoiur, right where it leaks 90% of the time, since the resourvoire is not very stable it moves around a lot, especially going over bumps, and the power steering fluid is very thin so when it leaks once, it will just keep on leaking...make sure you put a very good clamp, it will save you soem oil spots ;)

i have the same leakage too, for about 2 years now hahaha, but i just waited til i rebuilt my motor, im almost done putting it ack together, then i'll just replcae all of the hose clamps....the main on is right beneath the resorvoiur, right where it leaks 90% of the time, since the resourvoire is not very stable it moves around a lot, especially going over bumps, and the power steering fluid is very thin so when it leaks once, it will just keep on leaking...make sure you put a very good clamp, it will save you soem oil spots ;)

Funny, too, how time passes......thanks Godfather, et.al.

I had a leak that I thought was coming from the hose connection at the bottom of the reservoir. It turned out to be a leak in the pressure hose going from the pump to the steering box. The leak was about in the middle of the hose where there is a metal connection and the hose hooks into a clip on the inner fender well to keep it from moving around (lean over the driver's side fender and look down next to the exhaust manifold). The leak was on the under side of the hose and very hard to find. I only found it when I watched while someone else turned the steering wheel. When the car was moving the fluid would leak down onto the suspension and the wind would blow the fluid around (including the bottom of the reservoir).

I had a leak that I thought was coming from the hose connection at the bottom of the reservoir. It turned out to be a leak in the pressure hose going from the pump to the steering box. The leak was about in the middle of the hose where there is a metal connection and the hose hooks into a clip on the inner fender well to keep it from moving around (lean over the driver's side fender and look down next to the exhaust manifold). The leak was on the under side of the hose and very hard to find. I only found it when I watched while someone else turned the steering wheel. When the car was moving the fluid would leak down onto the suspension and the wind would blow the fluid around (including the bottom of the reservoir).
that is a leak usually caused by something hitting the hose, that part of the hose there is really hard to break, and it usually doesnt leak on its own...but possible, good find though, i hate oil leaks