1. The white paint in the engine bay is discolored with a yellow film. It's pretty baked on, so I presume it's burnt oil vapor. Which brings me to my next points...
*I believe that is just a coating of petrolium they use to prevent rusting in salty storage, sometimes they dont remove it and it cakes on.
2. The hot engine smells of burnt oil.
* If it smells like burnt oil that means its most likely dripping on the headers.
That would have to leak through the Valve Cover Gasket. Common leak.
3. There's a lot of black oil crud on the baffles between the bottom of the head and the exhaust manifold.
* They start black and then accumulate dirt, the dirt is then baked on. You can wash the crud off.
Do these point to an oil leak or gasket problem? Or is it something that you just have to live with on a car of this age? (I drove an MG for a month with a broken throttle cable, so dealing is something I can live with.)
* First off clean out your engine bay. Get rid of any oil marks or streaks, this way you can see where a leak might be coming from. Then go ahead and tighten the nuts on the valve cover. I believe there are TWELVE 7mm nuts.
4. The tachometer, MPG guage, and temperature guage don't work. I think it's just the fuses, where can I get a fuse box diagram?
* This is a fuse. I believe its number 12 or 15.. dont remember
5. Where can I get an original drivers manual?
6. How much should it cost to replace the timing belt in California? (I have no idea when it was last done, so don't want to risk putting on too many miles driving around in ignorance.)
* Around $300 i think.
7. Can I get a generic replacement windshield, or should I stick to genuine BMW parts?