He sent me these pictures today

 

Very typical at least you have some of it left. Which mechanic did you go with? If I were you I would change the fork as well if you can afford it or at least the bushings.
I hope that you are back on the road soon.

 

Later today I should be getting her back. I called a couple of other mechanics in my area, but they only differed by $200-$300 so I stayed at the original shop.

 

So today he sends me this picture....and I honestly have no idea what I'm looking at. If anyone knows what it is, please tell me if it's OK to drive with it like that. He was charging me another $300 for this repair.

 

Looks to me like the results of an oil leak over time. I'd have it fixed.

 

That's this part http://www.ecstuning.com/Mini-2005-C...ensor/ES28339/

If the sensor is not bad you just change the O ring on it cost around 4 buck the O ring dries up allowing oil to leak is a simple fix not a 300 fix

 

It's the front of the engine below the intake manifold, behind the fan (if you know what i mean) the fan pulls air in that area, looks like a lot of crud and dust got dragged up into an oil leak. Either from the dipstick O ring or the seal on the tranny, I doubt if its the seal on the transmission, the O ring on the dipstick is a prime suspect.. That pic could be of my engine the first time i pulled the front off. its pretty normal but worth fixing.