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I think your car has air in the cooling system, the E39 528 That I have also experienced the same thing. The thermostat doesn't work like it should when there's air in the system, and when this occurs then your engine will then over heat. I believe it just a very bad design on the the engineering part, it wasn't thought out well, and very easy to fry your engine just like that
The trick is when your engine is over heat, pull over let it cool for ten minutes, then start to bleed the bleeder valve on the top left if you look at the radiator from the front of the car. This will remove the trapped air. But don't forget to top your cooling water as soon as you can get them.
Now, this is assuming that your electromagnetic clutch fan, your thermostat, and your radiator and your water pump are working properly.
One other note, I heard that BMW's water pump are known with defective plastic blades, the plastic blades eventually looses its rigidity and then fails to give the cooling system the adequate flow. make sure you get a metal one if you ever need one.
Alex
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