The hood latch handle wasn't retracting completely through the grill as it used to and I could not figure out why. It seemed to need a spacer to make it fold up completely but there was no evidence of one ever being there. I tried another latch with no difference.

When replacing a front fender I found out what was wrong. Behind each front turn signal are two 10mm bolts, (all the fender hardware is 10mm) one near the upper corner of the headlight and one just below the level of the bumper. These bolts secure the large black plastic section which the headlights mount to. The same part that has the hole which the center hood latch goes through.

The two upper bolts, one behind each turn signal, were loose and the black section had shifted forward about 1/4", preventing the handle from retracting completely. Tightening these bolts fixed it.

Fwiw, the same bolts on the '95 845t I pulled the fender from were also loose. Apparently they back out over time.

I never noticed that my headlight aim was off but will re-aim now.

Erwin