The aluminum bolt head on the top of the motor popped off causing oil to leak out which in turn caused the distribution belt to start fraying. Once the fraying occurred the fray was pulled into the motor through the small holes where the belt is attached to the motor which caused the belt to wrap around, I believe the mechanic said, the piston (if that is not the word then it is the part that runs the motor) locking it up.

Now I this vehicle needs the motor replaced. This mechanic I use has worked on BMW's for 15 years he said that this is the third one he has seen this year with this problem. He stated that this year BMW has a terrible motor design which allows for the belt to do exactly what it has done to mine. Now this repair will cost me somewhere around 4000-5000 dollars. Wasn't there something BMW could of done to fix this once they were aware of this situation. This is my first BMW and my last. Thank you BMW for the crappy design work.