Hello - would appreciate any feedback. I am seriously considering purchasing... Car has 135K with auto tranny. I also have a E60 and am very familiar with cooling system weaknesses. Are these good engines and strong cars? Any feedback is greatly appreciated on anyhting I need a consider.

You may want to try over on bimmerfest, I don't think the e34 forum here gets much attention

http://www.bimmerfest.com/forums/forumdisplay.php?f=102

I have a '95 530i (8 cyl. m60 engine - I beleive that is the correct number) with about 113,000 miles on it. Absolutely love it. I have had the car for about 3 years and other than what I would consider normal maintenance and upkeep it has been a very solid Bimmer. I have installed a new fuel pump, a fuel sending unit, oxygen sensors, etc myself as they are not really that difficult. I also had a great mechanic but sorry to say he passed away. If i have a problem with it now I go to the dealership. I have explained to them that if the "fix" is not to difficult, I like to do it myself and so far they have been very accommodating. I pay them about $130 to $140 to check out the problems. The car runs better than the day i bought it.

There was an engine problem with these eight cylinder engines. BMW recalled 1993-1995s and replaced the short block free of charge to the owners.
Find out whether or not this work was done. You can also easily check to see when it was done and how many miles were on the vehicle at the time.
This 540 may be an exceptionally good buy. I owned a 1993 740i and the work was done at 40,000 miles, so essentially it was once again a new engine.