The hydraulic followers are small assemblies that rest on the cam and take the motion from the cam to each of the valves. The're hydraulic because they "pump up" with oil and should keep a constant valve clearance (assuming the oil is ok and they themselves aren't knackeded) The older method by overhead valve or pushrods, is to use mechanical force, which meant that a mechanic should check each clearance every so many thousand miles.
So, hydralics are probably better and cheaper for servicing. Don't know of their reliability in bmws or their replacement cost
The below link will take you to the Honest John web site:
http://www.honestjohn.co.uk/index.php?url=/carbycar/index.htm">http://www.honestjohn.co.uk/index.php?url=/carbycar/index.htm
This details pros / cons of the e34. I've also copy/pasted the relevant para which does indicate this problem is known (my highlighting)
What to Watch Out For
Electronically 'corrected' odometer/on-board computer (clockers sometimes steal one of the chips). Make sure dash display all functioning, as new preinted circuit costs £400. Accident damage. Electric window problems. Faked service indicator. Whining manual gearbox can last for years but expensive to fix. Slurry autoboxes with neglected ATF and filter changes. Accident damage to M5s. Earlier model, less powerful, imported LHD M5s. Smoke from worn valve stem seals. Overheating from cracked cylinder heads on older 6-cylinder 12 valve engines. Cylinder head studs of 12 valve engines can shear. 'Problem' M60 V8s. Duff catalytic converters. Smoking 1.8s (valve stem seals). Noisy 12-valve sixes. Misfires from faulty integrated coil units on later 24v. Rear subframe rubbers (MOT failure point - £200 to put right). Damage to front suspension and steering (look for uneven tyre wear). Duff ABS. Service light indicator can easily be re-set, so a paid invoice is the only guarantee of a recent service. Check tool kit is all there.
No doubt others will know more than I, ref the heads, what of the alan cowland team you mentioned to me? May cost less.
rgds
------------- Charles Stevenson
535i manual 1988 (By 'eck it's quick)
735iSE Auto 1991 (Beats Viagra for getting the blood flowing)
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