first check the shocks and make sure you dont' see anything leaking out of them, i.e. hydraulic fluids. which I am assuming your shocks are good by the way you said it.. 2nd it is most likely your upper shock mounts, as these have been found to be a problem on the E36's. I think there might be something more in depth about them in the FAQ section. But my guess is that's your problem.
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