Is it normal question...

[cshorett]

Replaced the valve cover gasket on the bimmer a few days ago and in the process was suprised to see that the paint on the valve cover was flaking off. I was able to scrape most all of it off with a chisel... Is this at all typical or does it mean that the previous owner probably overheated the engine..?
Also related was that when I popped the cover off the cam looked good and surrounding area was prety clean, no sludge buildup, maybe a little varnish if anything (everything was a light brown), but the valve cover had some nasty drud on the inside of it, all over the top. Why would sludge develop only on the valve cover and not everything else? Normal? Thanks guys.

[choffa]

Paint flaking is normal. Several writeups on painting are out there. Varnish is normal, sludge on the inside of the valve cover is not necessarily a concern unless it is very thick. Mostly vapors that plate out on the cover. Your oil fill cap is likely coated with same material. As long as you don't have sludge in the cam pockets & oil drain back ports, you're fine.

[cshorett]

Sweet! Wonder why BMW used such crappy paint there..