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The parking brake on the E39 is known to be very weak. In fact, we had a thread on this about a month or so ago. It basically boils down that you need to get it adjusted every couple of months. As far as the noise, that is not normal. If your brake pad warning light is not on, I would assume you may have a rock stuck between your rotor and backing plate. check to see if this is the case and if so, you can remove it with a long object. Hope this helps.
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T.C.
'01 Silverstone M5
AutoSolutions:short shift kit (40% reduction)
Automotive Specialist:cold air intake, swaybar brackets
Dinan:front strut tower bar, rear swaybar
Kelleners: race exhaust, suspension, ecu software
Rogue Engineering:transmission mounts
SuperSprint:X-pipe
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