Yeah Well... I had a similar problem with my 1.9 Z3 Garage did a test and it was the Head Gasket... £500ish Labour - Parts from C3BMW £300 Ish but did; Head Skim, Cam Chain, Water Pump, Water Pipes, Chain Guides, Head Gasket Kit, Fuel, Oil, Air, Sparks, Etc. Plus a bunch of other stuff: More or less £800 all in... More than I hoped for, but Bertie's Engine is now good for at least another 250,000 Miles so well worth it! Damz xx