Originally Posted by Bio240D

Thats a Head Gasket!

Here is a simple test. Take off the rad cap, fill system with coolant, Leave the rad cap off and crank the engine, but don't let it start (just crank immediatly rather than letting the GPs get hot first). If the HG is blown, coollant will shoot from the radiator in strong pulsing spurts. This could also mean a cracked head or block, but that's pretty rare.

Sorry to be the bearer of bad news, but I went through this with a blown HG on my 240D. Identical symptoms, but I hope I'm wrong!

Good Luck, Chris