It looked like the hose had been rubbing on the oil filter housing and had created a hole. Strangely, the hose wasn''t really touching the oil filter housing at that time. I decided to check our online technical information source for a BMW factory technical service bulletin that could shed some light on this problem.Great! There was a bulletin that covered this exact problem and here''s what it described:Some BMW M3 models, produced from September 1995 through June 1996, equipped with the M54, S50, or the S52 engine, may have an upper radiator hose that can come in contact with the oil filter housing only when the engine coolant is at operating temperature. The contact is due to coolant system pressure and expansion of the hose.Checking the clearance between the upper radiator hose and the oil filter housing must be performed when the engine is cold.

It looked like the hose had been rubbing on the oil filter housing and had created a hole. Strangely, the hose wasn''t really touching the oil filter housing at that time. I decided to check our online technical information source for a BMW factory technical service bulletin that could shed some light on this problem.Great! There was a bulletin that covered this exact problem and here''s what it described:Some BMW M3 models, produced from September 1995 through June 1996, equipped with the M54, S50, or the S52 engine, may have an upper radiator hose that can come in contact with the oil filter housing only when the engine coolant is at operating temperature. The contact is due to coolant system pressure and expansion of the hose.Checking the clearance between the upper radiator hose and the oil filter housing must be performed when the engine is cold.

Andrew/Whittet-Higgins: One pitfall is not allowing the needed spacing in the assembly housing. If the components are not locked together properly, the machinery can fail prematurely. A second pitfall is assuming that a particular torque measurement for one component is correct for the entire assembly.Jim/Stafford: * Using a set-screw collar on accessory a hardened shaft. The screw does not "set," and holding power is greatly diminished.* Using a set-screw collar on thin-wall tubing, which can permanently distort the tubing.* Specifying too thin a width on a clamp-type collar, leaving it too weak to resist distortion when the clamp-screw is and tightened.* Specifying too thin a clamp-slot tool and kits on threaded shaft collars where the collar must flex more in order air to adequately clamp onto the threaded shaft.