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well, i'm not surprised a brand-new transmission through the BMW dealership costs that much...just shop around...look out a for a good independent mechanic to either rebuild your transmission or replace it with a rebuilt one...it should be a LOT cheaper.
i know how you feel about keeping your e34...i have a 1993 190E 2.3 which I've had since highschool and theres no way i'll sell her. she has over 200k miles, but no major problems (knock on wood) ...
good luck and i hope you don't have to let go of your baby =)
-K
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