Hey everybody. My E32 735i is leaking coolant and possibly transmission fluid. Can anyone tell me how bad this is? Here is a link to a site with pics. http://web.mac.com/bmwracer_84/Site/Blank.html Thanks again everyone!

I also noticed a good size puddle underneath the driver side area. The fluid is red.
Red is transmission fluid. Green is coolant.
Cannot tell you from pics how bad it is, drive to an indy and ask to check.
Seems not too bad, change the leaking hose first. Clean everything, then drive and look for the other leaks.
Not always the liquid comes out under the car where the actual leak is. It may drop in the right engine side on top, drops to another hose/metal/pipe, and so on, and finally it comes out somewhere. So you have to clean all and the see where the source ist.

get a pressure test done for your cooling system.

Well I took it in and it was discovered that it was a power steering hose. Some how the fluid dripped down to that part of the car. I had suspected it might be power steering issue because of the color of the fluid and the last week the cars steering hadn't felt right. I'm just glad I get to drive it instead my dads ford ranger. Now if I can get some of the electrical stuff to work right things would be perfect.

Ohh yeah, your 735 has red ATF in the power steering. My 750 has Pentosin CHF 7.1, that is greenish.
Hope you also changed the filter in the power steering reservoir.
Good source for E32 info is here
http://www.bimmerboard.com/forums/e32
also check there on the right top under related links, that is the archive for tips and tricks for DIYer.

if you dont mind me asking how much did the work cost you?

and was it the pressure hose?

I believe it was the pressure hose. It cost $80 but they also did more work on it. I had them do the spark plugs and change the oil too. I know I can do all the rest by myself but I'm getting married next Saturday and have no time to do anything. I barely had time to take in my car. I'm glad I have it back.:alright

Hey Shogun I thought it was transmission fluid too cause it was red. The only thing that made me second guess it was Thursday. I was trying to take a corner and the steering was just off. What does changing the filter do? (I know its a dumb question)

What does changing the filter do? (I know its a dumb question)
Well, basically the same as the oil filter change does. The filter is getting clogged over time and flow might be less.
ZF Recommended Steering Systems Flushing Procedure

steering system is an important safety component in a vehicle and must be properly maintained. With this in mind, a steering system must be flushed EVERY TIME a component of the system gets replaced, no matter if the components are new or remanufactured.

Equipment Needed:
- Safety Glasses
- Empty Bottle for contaminated oil
- Screwdriver
- Manufacturers’ Recommended Power Steering Fluid
1- Clean the outside of the oil reservoir and the surrounding area to ensure no dirt or foreign particles get into the oil reservoir.
2- With a screwdriver, loosen the clamp holding the return line connection between the steering gear and the oil reservoir.
Disconnect the oil line from the oil reservoir.
3- Insert the end of the return line into an empty bottle and cap the oil reservoir return connection with a plug.
4- While wearing safety glasses, start the engine and fill the oil reservoir with fresh power steering fluid while turning the steering
from side to side to purge all oil out of the system. (Use recommended fresh fluid to flush the system.)
5- Turn off the engine and remove oil reservoir from bracket. Flush out debris or particles from reservoir into container. Check oil
contamination for metal or foreign particles by filtering the contaminated oil with a coffee filter.
- Fine metal shaving means a normal wear and tear of the power steering pump.
- If metal chips are present, replace power steering pump.
- If black rubber particles are present, the pressure/return line inner lining is disintegrated. Replace the pressure/return
line.
6- Check the oil reservoir condition for cracks. If the oil reservoir is cracked, replace the oil reservoir. If reservoir has no cracks,
just replace the oil filter. If filter is integrated inside the oil reservoir and cannot be removed for oil filter change, replace
entire reservoir.
7- Check the condition of the pressure/return oil line for cracks, soft or sweat spots. If any of these conditions exist, replace lines.
8- Check all banjo bolt connections for blockage. If blocked, clear connections by appropriate method (air hose, fluid, etc.)
9- Reconnect oil reservoir into bracket.
10- Connect return line to oil reservoir.
11- Top off oil reservoir with manufacturers’ recommended fluid.
12- Start engine and turn steering from lock to lock to purge air out of the system.
Caution:
Do not hold steering gear from lock to lock for more than 30 second. This could cause the steering system to overheat.
12- Check for oil leakage and top off power steering fluid to recommended level.
The smallest particle can cause the system to leak or even fail. A clean system is a REQUIREMENT for acceptable service life.

WWW.zf-group.com Teleph one: 1 800 660-9631
e-mail: steeringinfo@zf.com
Address: 777 Hickory Hills Drive
Vernon Hills Il 60061
PPINS250 Rev 00 05/12/03
Excerpt frpm ZF Pump and Steering Catalog

Vehicle, Year, Application, OE Part No., OE Service Part No., Gear Part No., Pump No,
are shown here
http://wuffer.net/MyFiles/ZFSteering.pdf

I bet the coolant leak is from the heater valve seals going bad. Every one that i have replaced leaked in that same spot. It drips down right on the intake manifold right where you took the picture. These are easy to change. If it isn't that check the recirculation hoses on the coolant tank. Also check the coolant hoses that go into the fire wall to see if they are leaking. Hope this helps.