for years now everyone on this board is complaining about the oil consumption ,i don't have mine very long, about 2 months now,and yes, every time i checked the oil it was half the dipstick,so i filled it up again, next drive ,same thing, so, got to the basement looking for all my bmw magazines,there was an article in one of those from hartge, putting the M5 engine in the E46, talking about the engine the guys says"it's a great engine,some people are complaining about oil consumption which is in fact overfilled oil who burnes"
so i read my manual for the 52 time, and yes, there it is!
you have to check your engine oil when the engine is hot, and before checking the level you must let turn the engine at idle,for at least 20 seconds, this to give the additional G-force electrical oil pumps the time to remove the oil in the cilinderheads back to the oil pan.
i tried it for 2 weeks now, and i have no oil consumption,this works well for my car.
on the other hand, a car who burnes oil is getting blue smoke out of the exhaust, i bett non of you has ever seen this on the M5, (i didn't)so , i think that's it !!!!