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BMW has an SI bulletin on this, warranty covers it (archive)
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Posted by jcarey on April 30, 2002 at 11:46:24:

In Reply to: Squeak in the rear. posted by Nbabylon on April 30, 2002 at 06:53:01:

IF youa re out of warranty, then get the grommit from teh dealer and put it in yourself, or try the fix offered perviously. The point is that the emergency brake cable has cut through the rubber grommit that was there, so you can expect this to happen again to anything that is too soft. I'd look for something in PVC to use as a substitute.
John

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