I was too quick to assesed that my MCS was leaking coolant!!! it is one of those things when you are new to a car! (trying to rationalize my stupid mistake ), I did not have a Service manual, so I did not check location of TStat for leakage, I saw a greenish puddle under the car and assumed it was coolant.... (Tstat and housing replaced couple of weeks ago, now I know how to thanks to NAM and you all) well leak was not coolant, I found out this morning, it is power steering fluid!!! . Maybe a $0.50 cent band clamp could have fixed my problem, it looks like the leak is coming from upper hose attached to P.S. reservoir. "Advice" get a service manual and a really good flash light

Now if some one can direct me to the "how to thread" for power steering leaks will be greatly appreciate it

 

well at least you have located the problem. good luck

 

Make sure to use the correct fluid. Using anything else can be a costly mistake.

http://www.ebay.com/bhp/bmw-power-steering-fluid

 

Change all PS hose clamps to screw type. Use only Pentosin CHF11S fluid.

 

"Sometimes" as a temporary fix, just cutting off the OEM clamps and installing new hose clamps will work, but not for long. The one from reservoir to pump is in a very hot area of the engine bay, so it loses it's resiliency becoming hard preventing a tight seal no matter how tight you make the new clamps. But of the three PS lines, the cheapest and easiest one to replace.... Part no. 32416754498 - #1 in diagram below.