The first step is to remove the gas cap assembly. There are four screws holding on the assembly and once removed the assembly comes off quite easily. At this point I siphoned off the remaining gas into a portable tank and I recommend everyone do this if possible.
Inside the tank on the left center side the front half of the filter can be seen. A small piece of hose attaches the filter to the pipe carrying gas to the injectors ( the pipe is on the bottom of the tank). This hose is held into place on the pipe by a small clamp which can be loosen by a screw driver. After loosening clamp screw, the hose can be slid off the pipe and filter can be brought up through the tank opening.
The other end of the filter is attached to a hose that is attached to the fuel pump. Note the direction of the arrow on the filter is towards the end that attaches to the pipe going to the injectors (the first hose that was removed). The filter can be removed by loosening the bracket on the hose connects to the fuel pump and the small piece of hose on the other end is similarly removed. Be careful as the filter is full of gas which is best directed into the tank and not on it.
Reverse the process for installing the new filter.
I replaced my fuel filter with one bought at Canadian Tire for $11 (Taxes
included). I use a 1996 Ford Mustang GT, 4.6L filter. It's bigger than the
original BMW, but the flow and pressure rating are identical.
Here is a list of alternative replacement filters: (Any steel filter with 5/16 -8mm inlet and outlet that is designed for Fuel injection will do the job just so long as you can get it through the hole).
BMW - 16 14 2 325 859
KNECHT MAHLE KL145
Napa Gold 3032
Deutsch model FF424
Purolator - F20011
Here is the 1996 Ford Mustang GT, 4.6L filter
Bert (Crazy Frog)