| Do you KNOW when you timing belt was changed? If not, then it would be a good chance to do that. See if you can get a mirror or something to see exactly where the water is coming from. There is a "weep" hole that is designed to secrete some liquid if necessary. I'm pretty sure that if you have any kind of leak, either from the weep hole, or from around the gasket, you should just go ahead and replace the pump.
Water pump and timing belt = $70 (if you do it yourself)
Blown engine? $$$
__________________ '86 325es (TURTL3): PJ peetsa hawler
'87 535is (BADWATER): almost done... really.
'86 325e (GRN HLL): DD/show/rocket
'04 x3 3.0i: Wife's Bimmer (manual, woot!) My BMW Blog | 
