Mysterious Metal Clanging Noise :-(

Very old thread but still relevant. Had mine fixed today and thanks to everyone on this thread for their input. From reading all the posts my friend also found the official BMW bulletin for the fix, I took this to the garage, they did it and it is fixed! I'm so happy, the clunk was getting slightly louder and annoying over time and it got my worried.

Attached is the BMW bulletin including the parts and process needed. I think the lubricant required is no longer made but my garage had an equivalent type. Total cost was £265, mainly labour to strip it back to get to the differential - then it was just a small cost for the seal and lubricant.

Not a sound now :D Hope it helps someone! Still loving my Z4 E86 Coupé, 174,000 miles now!! :D

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