So Thursday morning and I get a call early doors, mechanic says good news or bad news ! Now in a slightly worried state, said both together and quickly please. Turns out the rear wheel bearings wasn't the issue and it was a front that also included the hub with abs ring etc, so the pair of rears went back to Euro Car Parts for credit.
Late Friday I arrive home to find car had been landed on the drive with no bill or explanation, so after a quick chat it turned out that this has cured the horrible noise and there was a problem with the rear brakes rubbing and a lack of pads, so this was also done.
Quick Friday test drive and it sounds lovely, and almost quiet which is a bonus, although I also went out Saturday which was a bit further and still impressed by how much one bearing can knacker the whole car.
Not perfect but will work on a few other issues, the water level is now constant, so the E36 is a pain in the backside to bleed for future reference and after reading some others on forums, I have found that some say jack the front up to help it.
Have added some antifreeze and hopefully this is the worst problems sorted.
Need the rear window replaced now, so looking for a place to either supply or fit as well.
Internet bound.