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There's a strong possibility that it's the valve body of your transmission. Most BMW trans fluids are lifetime. Meaning you don't really have to service it. E65/66's transmission issues were usually due to a failing mechatronics valve body.
Did you check the Vacuum lines to the Secondary air Valve Controls. They may be rotten. Can you do a Smoke test. Replace dry rotted lines with either 3/16 Fuel or Power Steering Hoses if you do not get ORM Vacuum lines/hoses. There are many Vedios on You Tube showing this specific problem solving on German cars. you can check out these,
Secondary Air Injection Systems on German Vehicles
E39) 2001 BMW 525i Resolve P0491/P0492 for less than $2.00 in approx 15min.
How to Fix and Diagnose BMW P0491 P0492 Secondary Air / Vacuum Leak E36 E46 E39 E53
check your vacuum hoses and also check your intake tube, my 325 i did same and found out was just one vacuum hose and i had a rip in my intake tube coming off the throttle body.
Well sorry to tell you this but hes not the type of mechanic i would have working on my car BMW or any other car as all vacuum hoses are fitted on all engines for good fuel /even running etc
but the thing any mechanic would have is a vacuum piping chart as we all have them and some older cars only have 5 pipes but the later ones have up to 14 pipes so get the print out and do it yourself .
Ron
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