I don't know, $1,000, it could be a good deal. Interior being disassembled IS a big minus, but if you can put it back together, this might be a way you could save some $$$.
The 33K miles in less than 1 month seems very sketchy, and I'm surprised Carfax has nothing to say about that. That's like driving 1/3 of the way across the United States EVERY DAY for an entire month. Overall, though, 175K is high, but not prohibitively high. Most of these cars go 200K with basic maintenance, many go 250K, some can even go 300K. I've heard of automatic transmissions failing in some 7-Series at 150K miles, but this is the same unit used in 80's 5- and 7-Series and it's overall very reliable and durable. Drive the car and make sure the transmission is not acting up AT ALL. If it is, do not buy the car.
If you buy, I think
www.e38.org will help you out A LOT with the diy work.