matt, your help I believe saved me $1250 !!!
after getting your pictures, I got under the car and saw that the pipe going from the front muffler to the center silencer was disconnected. I want to say disconnected because I really didn't see any corrosion, but it was simply disconnected at a weld location.
So, knowing exactly what was wrong I went to my normal mechanic, told them what was wrong and had the 2 pipes welded together. They did the weld, checked for leakes, and 2 hours later I was out the door for $150 !!
They had to lower the entire exhaust from the car, I guess it's bolted to the transmission and engine, then hung from the body of the car with hangers. For them to weld on top of the pipe, the entire exhaust system had to be lowered.
and the shop did confirm that the entire exhaust is sold in 1 piece, not looking forward to that day !!
1994 325iC, 130k miles