BMW M60
The M60 is a type of V8 engine manufactured by BMW from April, 1992 to 1995. There were two versions of the M60 throughout production: the M60B30 and the M60B40. These aluminum alloy engines weigh 146 kg, and have 32 valves (4 per cylinder) DOHC and a timing chain designed to last the life of the engine. They are controlled by a Bosch M3.3 DME engine management system.
In 1996, the M60 was replaced with the M62. The 3.0 L was dropped in the US, but the rest of the world got the M62B35, a 3.5 litre V8.

M60B30
The M60B30 was the 2977 cc version of the M60. It produced 218 hp (163 kW) @ 5800 rpm and 229 ft.lb (310 Nm) @ 4500 rpm.
Cars with this engine:
· 1993-1995 E34 530i
· 1992-1994 E32 730i
· 1994-1996 E38 730i

M60B40
· 4.0 liter (3952cc) 32 Valve DOHC V8
· 10.0:1 Compression ratio
· 286 hp (213 kW) @ 5800 rpm
· 295 ft.lb (400 Nm) @ 5100 rpm.
· 91 octane fuel or better recommended

The M60 was on the Ward's 10 Best Engines list for 1995 and 1996.
Cars with this engine:
· 1993-1995 E34 540i
· 1992-1994 E32 740i
· 1994-1996 E38 740i
· 1992-1996 E31 840i

The Nikasil problem
BMW used Nikasil, an Aluminium, Nickel, and Silicon alloy, to line the cylinders of the M60 engines. The cross-hatched Nikasil linings react with high sulfur content found in lower quality gasoline, such as those in parts of the United States. This reaction causes damage to the very top of the bore, where there is the most contact between the combusting fuel and the cylinder lining. The damage prevents a good seal from forming between the piston and the cylinder wall, causing a loss of compression in the combustion chamber. This "leak down" will cause M60's with worn linings will exhibit a rough idle and, if the problem continues unchecked, the engine will not start.
The only permanent fix for this problem is the replacement of the short block with the equivalent block using Alusil linings, which do not exibit this corrosion problem. After the problem was found, BMW issued an extended 6 year, 100,000 mile (160,000 km) warranty to cover these engines at no cost to the owner.
The composition of the engine can be found by checking the serial number stamped into the engine block:
M60B30:
· 1 725 970 - Nikasil
· 1 741 212 - Nikasil
· 1 745 871 - Alusil
M60B40:
· 1 725 963 - Nikasil
· 1 742 998 - Nikasil
· 1 745 872 - Alusil

Material from: http://en.wikipedia.org/wiki/BMW_M60

More info on the M60
Remember not to lose complete control of yourself when your M60 starts idling rough. Just to name a few: old plugs, worn coil(s), vacuum leaks can also lead to rough idling. Click this link www.e34v8.org for a ton of information about the M60 engines.