You are dead on. I called the mechanic today, and he said he went ahead and replaced the valve stem seals because they were shot. He said the valve guides were slightly worn, but thought the guides were good for another 100,000 miles. He has seen valve guides on many a Porsche 911 (not mine, thank god) that have been twice as worn as my M5 and still running fine. So unless premature valve guide wear is a BMW or E34 M5 characteristic, he thinks it is fine. If I need to do it now though, please tell me, because I might be able to get the warranty company to pay for it while there in there if this is a BMW commonality.
Having said that, should I go ahead and fix the valve guides? He said that is another $1200-1500 and did not think it to be necessary for several more years. He is a fantastic mechanic, but admits he is a Porsche specialist, not an M-Series specialist or even a BMW guy. What fascinates me is his aptitude for this complicated engine without ever being in one (he has worked on hundreds of BMW's just not an E34 M5).
He did give me and other E34 M5 owners a huge compliment today. He said, "Man, I love driving that car. I could drive something like that to work everyday. Of course it would probably get me in a lot of trouble". :p
For a guy who works on 400 HP 911 Turbo's to say that, makes me feel great about my everyday car. Plus, he's been doing me right on my 911 since 1997.
He checked the head today for trueness, and said it is unbelievably PERFECT!!! As far as the chain, I'll check the records. What is the recommendation for miles on a chain?
Thanks again for all the help.