MyE28.com

i think you mean the crank pully not fly wheel.. if its dripping on to that its gotta be something around the thermostat housing.. when checking the hose clamps they can look tight but be cocked at an angle and they'll leak like that.. with the system cooled down i would just loosen the hose clamps around the the thermostat housing and re tighten them.. i'd check the thermostat housing bolts as well.. but they break easily if over tightened so be careful.. i think the spec is something like 16 in/lbs.. thats inch not ft/lbs.. i dont have my bentley handy but i remember it being pretty low..

I was looking in the archives more, could the coolant be coming from the weep hole in the waterpump?
If it was, would it leak all of the time?

here's a quick check - with the car cold, grab the water pump pulley,a nd shake it. If it moves, then your water pump is def bad, and don't drive it!!!!! This is what happened to me. It probably is your water pump, though. Just order a new one from bavauto, and budget yourself a good 3-4 hours if you've never done it before. Just make sure you have some metric sockets/ratchet, and a fan tool wrench, or a very thing crescent wrench to fit into there to take off the water pump. While it's all off, you should really replace your thermostat, too.

The water pump can leak while not having any play, so the lack of play would not mean it isn't leaking.

If you do need to buy a water pump, I'd check with Brian The Parts Pimp and/or Steve Haygood on the board here -- they can give you a good deal and you'll be supporting one of us.

FWIW, I don't believe changing the thermostat is necessary unless the car has been overheating.