By: Filip75 (from BimmerForums.com)

I've done this on a 1995 318ti. I'm not sure, but it might be a little different in other E36s.

If you have STOCK stereo, make sure you have the ACTIVATION CODE for it before proceeding

1. Open up your hood and disconnect the "negative" clamp on your battery

2. Jack up your car. Stands are preffered, so you have the most amount of space to work at...I used the lift, so it was a cake walk for me :-)

3. Look at your Exhaust. Backtrack it from the muffler, past the CAT and you will see a plug screwed into the side of exhaust.

4. Track the wire from that plug to the plastic connector (right beside the ATF fluid pans).

5. That plastic connector rests in the bracket. The bracket is being held by a bolt. To get easier access to the plug, undo that bolt and the bracket will sag down letting you disconnect the plug with ease.

6. Now, that the plastic part is disconnected, go ahead and unscrew the sensor from the exhaust. It WILL be tight

Installation is the reverse of instructions above.

INFO: When I installed mine, the wire on a new sensor was almost 2 times longer then the original's. I Lock-Tied it to one of the flex bars right there. Make sure, that the wire doesn't come in contact with HOT parts (exhaust & ATF pans)

Filip Malkov (Filip75 from www.BimmerForums.com)