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milkspec

E46 Transmission :(

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Could be a few things but the best unfortunately is not to drive it until its looked at by a professional.

If it needs replacing here are the options:

Rebuilds really aint cheap (4.5-6k :/) master drum rebuild and seal kit, fluid and clutch packs and possibly worn valve guide replacement (gets over looked a lot unfotunately even by the pro's (yes I have been burnt with this) )

Second hand auto trans will be your cheapest option from someone like Ray @ hellbm (see sponsor list)

Manual conversion. More expensive that direct replacement however might be worth it in your eyes.

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