i have a 2001 Z3 3.0i w/ 25K miles. I've been noticing a white residue in my engine compartment. At first, I noticed it on the side of the airbox and around the power steering reservoir.

i installed some underdrive pullies a while ago (i've noticed the white residue even before the pullies). Because the pullies have open slots in them I can see the underside and I'm noticing a build up of white residue on the inside of the water pump pulley. When I had the coolant flushed, i also noticed some white residue on the A/C compressor.

so, since this white residue seems to be splattered in the plane of the fan attached to the pump and now that I see it's on the insides of the pulley, i'm guessing the leak is from the pump? What do you guys think?

The coolant level has never dropped dramatically. So i don't think it's a major leak. I don't see white spots on the garage floor nor is anything really wet in the engine compartment. The only evidence that i'm finding is the white residue inside the engine compartment.

What do you guys think this is? Is it worth worrying about?

I mentioned this to the service advisor at the dealership a while ago. He said it's normal for some coolant to seep out when the system is presurized in hot conditions. He basically said not to worry about it.

If this is sign of certain failure in the future, I want to have them replace whatever is necessary under warranty. Is such thing covered under normal warranty? How about CPO warranty? I have both until November...

Any advice/thoughts appreciated...