Thanks for all the comments you have posted! No plans for the car yet other than to get it running properly and change the brakes so its safe for me to drive when I turn 16 next March.
Today we started with removing the fan clutch so we could get to the timing belt. We had some problems with taking off the fan clutch because we didn't have the right tools but finally got the bolt loose with a 32mm wrench from the bicycle store.

Next we removed everything to get to the timing belt. We did have a problem getting past the rotor because the 3 mm Allen head screws were stripped by the previous owner. My dad just broke the rotor so we could take off the upper timing belt cover. It was a pain!

After that we got the timing belt off where we saw this:

Have you ever seen a timing belt fail in this way?
The teeth were stripped down at the bottom of the engine on the crank.
Well either way we continued on disconnecting all the intake hoses and electrical plugs to get ready to remove the head. We have been using the Bentley manual that my dad had when he used to have a BMW E30. We also found a few links on the internet that are helping us along.

It looks like the only thing left holding us up to get the head off is the exhaust manifolds. They are causing my dad a lot of troubles. We have got all the nuts off except the 3 bottom nuts on the manifold closest to the firewall.

Any tips on getting these off?
We tried taking the 3 nuts off where the manifold connects to each exhaust pipe but they won't budge. Either way they are soaking in this fluid my dad calls PB blaster to hopefully loosen them up.
Well.. That's it for now. We probably won't be back on it till next week so stay tuned!

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so if anyone says anything rude just ignore them hahaha
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