Sounds like a hose might have blew.......but on the e36, check the upper radiator neck for cracking where the upper hose connects, also check to see if you still have the stock thermostat housing which is plastic & are prone for cracking too! they are common problems.......but you will have to check where exactly the leak is & get back to us.........depending on the mileage, it might be time to replace the waterpump, thermostat & housing, & upper & lower radiator hoses......I just did all this about 6 months ago, @ 93,000 miles. It cost me under $150.00 in parts from........Autohaus
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johnny,