Righto, good to hear about the free play.
Just got back from the BMW dealer. Got a quote on bearing and seal replacements just to see what my options are ($400, not happening)-- but they guy I talked to said to bring it in to look at it anyway. First thing he says is, "your splines are really worn," (which they aren't) and proceeds to start processing me for a new input shaft, once I remind him that I was only looking for bearing replacements he just said that "they look fine," and he had no comment on the noise. So helpful...
But one thing I did notice this time around was that someone else has been inside my transmission. There are all new bolts on the front cover, and some (rather sloppy) black sealer around the perimeter. Never noticed it before since I usually just wipe down the housing and put it all back together, but this time I used some degreaser and really cleaned it all up-- so now the source of the leak is appearing (will investigate further), but it doesn't explain the dry input splines after 10,000 miles (mechanic had no idea, surprise). My only solution is a new lube: Guard Dog, since I've already tried others. But if someone has any other possible solutions...
So I'll be popping into the transmission to check on that black stuff and the seals and bearings. I'm fairly mechanically inclined, but don't have access to many special tools, is there anything weird needed for changing this stuff? (@Rick G: do you have any part# or link's to suitable replacements?)