Oil Change Procedure
1. Jack up the driver front side of car (this make the oil drain toward the plug in the oil pan, which is on the passenger side).
2. Open the hood. Slide an oil drain pan under the oil pan.
3. Loosen the 13mm bolt in the center of the oil filter canister-housing (it's aluminum -- near front/top of engine), remove the bolt, and remove the cover to the canister.
4. Remove the old oil filter.
5. Remove the oil drain plug from the oil pan (I think it's 17mm but I'm not sure) and drain the oil.
6. Replace the small O-ring at the bottom of the oil canister bolt. Replace the washer at the top of the oil canister bolt. Replace the rubber O-ring on the oil canister cover. (All parts are in the Mahle filter box - Mahle filter is part number OX68D).
7. Install the new oil filter. Install the canister cover and canister bolt. Tighten the bolt to 15-18 ft. lbs of torque..
8. Replace the washer on the drain plug (new washer comes with Mahle filter). Reinstall drain plug and tighten to 25 ft. lbs.
9. Remove oil fill cap on top of engine and add 7 qts. of oil to engine.
10. Lower car off jack and run engine to check for leaks. The red oil light on the dash will stay on for a few seconds until the new oil gets to the canister and repressurizes the system.
Taken from http://www.bmw-m.net/TechProc/oilchange.htm