BMWfanforever said:
I am convinced it's vanos seals. Just waiting for them to arrive from the states then I will update again.
The vanos only changes cam timing to move torque down to the lower RPM range, in the "off" or un-adjusted position is the position for the most torque at higher RPM, which equates to a higher peak power. Vanos only improves low and mid range torque which has very little effect on performance.
Have you done a compression test?