I was very lucky, my E46 did a sort of "self service" on the power steering, the top hose popped off about 1km from home leaking all the ATF fluid out, after refitting the hose and refilling with ATF it is a lot quiter than before, so in my case the system needed fresh ATF. I know all my fellow mechanics will agree with me, once the ATF in your power steering starts to smell like burnt toast it is time to drain the old fluid and put fresh fluid in.
Power steering systems are the cheapest items to service, the most neglected, and one of the most expensive to repair once it is "beyond routine service " due to neglect.