Was at Portland, OR Mini Dealer on Friday for Oil change and Brake Fluid flush in my 2006 MCS, with 42,000 miles. When done, Service Advisor mentioned they noticed oil in coolant.
I left and went to Portland Autohaus to my Mini mechanic (Brandon)and he confirmed oil did appear to be in coolant and no visible coolant or oil leaks. I left and made my 220 mile drive home during which I caught up to a WRX and we played cat and mouse for 15 miles speeds up to 110mph with the usual no issues, not running hot or anything. Today took it to a local shop and they performed an 'engine block test and quickly failed indicating combustion gases present in coolant system". So back to Portland Autohaus to see Brandon and have him tear into the engine hoping it's just the head gasket, like I said no perfomance issues whatsoever. The only thing I did notice today at an idle for about 7 minute the temperature went up 10 degrees, the outside temp was 60, once moving temperature dropped. I have already had the dealer do the thermostat replacement 18 months ago, as I know those are an issue. It does (head gasket) seem to occur more than I thought based on post I have read here. Has any body got Mini to pay for their head gasket failure.
I do have a 15% pulley, Alta intercooler, JCW injectors, Alta header with Borla exhaust and a Craven CAI. Any thoughts or input would be appreciated.

 

Followup: pressure test of oil cooler indicated it was fine. Tomorrow morning they tear into the engine and remove the head. Bye, bye $$$$$.