Hey guys! here is some info and hopefully this helps someone with a similar problem.
I decided to change my transmission oil after all! after reviewing countless blogs! The following reasons why I decided was from the following;
1. Lifetime oil to BMW (dealership) means up to 100,000 miles and NOT the lifetime of the transmission
2. I want to keep my car as long as possible since it is the classic E46.
3. I have 173,800 miles on my vehicle, the gasket is starting or has been leaking (minor) for some time since it is "worn out". You can tell from the gasket area which has oil collected or has been dripping from.
4. The gear was skipping from 1st to 2nd at around 2800 RPM's (fixed today BTW)
5. Most of the time I am coming to a stop or slowing down the transmission seems to pull back.
Well I will be using the BMW filter, gasket and bolts kit.
I am going to use the original "Texaco" life time oil from BMW dealership to prevent "mixing" different fluids together.
For right now I have added 1quart of Lucas Transmission Fix. This product works with ALL transmissions and you can add this to the existing oil as well. I trust this brand since I use the Full Synthetic Oil Stabilizer for the engine and lasts up to 10,000 miles before the oil is "worn out" and in need of another oil change. http://www.lucasoil.com/products/dis...smission%20Fix
My transmission did lose about 1quart of oil. With this I was able to top it off again. The test drive was surprisingly smooth! did not skip or hesitate changing gears at all. Coming to a stop my transmission did NOT do the "pulling back feel I used to get before when it downshifts. I am overall satisfied with this product and suggest using it if you just need to top off. I did it just for now to prevent driving my transmission dry. Better safe than sorry! the bottle cost me about $12 at AutoZone and better to pay that than a new transmission!
If you plan to keep your car! I suggest changing the transmission fluid at about every 80 to 100,00 miles and buy it from BMW if you are not confident using other products like I am. As for me regardless I am going to have to do it since the gasket is no good!
What say you?