Does anyone know what is really expected on the insp 2 for my 318ti? I read that alot of the fluids were supposed to be replaced but the place I went to said they just get checked. Mine is manual and I worry about the rear and manual boxes it is 135k miles and I love the car.

135K is a long haul. Their is sae 80 + oil in both the diff SAE90 and gear box (SAE 80) these should have been replaced, when inspected. the oil cost AUST$ would be $20.00.
There are only four bolts to remove and replace to do this.
The Filler plugs and drainer plugs. You car will love it!.

Anyway I not a mechanic, but It seems like you're Boys just got lazy?

All the best Mick.

here is the inspection 1 and 2 charts:

http://www.bmwe30.net/cgi-bin/datacgi/database.cgi?file=articles&report=view&ID=00006&Section=

just a thought, im not sure what years ure bimmer is, but i am guessing it is an E36, not at E30, however i believe most of this will be identical. . .