Introduction
This guide will illustrator the procedure to remove the Differential Output Shaft of a 2000-2006 BMW M3
Credit to M3Forum.net user JeST
Tools
Parts
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The E46 M3 has four factory jack points (two per side), but you can also jack up the car using these two center points (one in front and one in the rear). Then you can easily place jack stands under the lift pads on the sideskirts/rocker panels.
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DO NOT JACK UP BY THE DIFFERENTIAL!
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Using a e12 socket , remove the 6 bolts
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Using a pry bar, pop the output shaft out of the diff. The shaft is held into the diff by a spring clip that needs to be compressed for the output shaft to slide out of the diff.
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For additional clearance , it may be beneficial to loosen all 4 allen bolts that holds up the rear sway bar and swing it down and out of the way.
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Inspect output shaft spline for damage once it is removed.
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Try and keep a mental note as to how far the seal sits in the flange.
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When your placing the new seal in make sure all of the original parts from the original seal is out (primarily the skinny circular spring, you'll see the spring when you look at the new seal).
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Use something a little smaller in diameter then the seal itself (I know this is kind of vague but really anything thats a little smaller in diameter will work) and tap it in with a small hammer (it's a tight fit in there but you'll have to tap the seal in until the seal is in the flange about 1/4" deep into the flange).
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Seal has to sit flush (without having one side of the seal in or further out then the opposite side).
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