Have a 95 525i. No problems with the air conditioning except the compressor sounded like it was about to come apart. The Dealer indicated that it was in need of a compressor. It is under warranty, so told him to replace it. He replaced the compressor and drier. Unit seems to work fine except that I am getting a lot of condensation off of the part of the unit that is behind the console on top of the drive shaft tunnel.
The carpet that cover the sides of the tunnel and both floors are taking a lot of condensation and are wet. The two drain hoses are both connected and they are clear. The black plastic housing above and to the rear of each drain seem to be wet and are dripping.