1995 - 325i - Overheated

[Goodwinpro]

Here's the story...
For the past 2 weeks or so the car leaked gas under the car when I would first start it up. I'd shut the engine off and back on and the leak would stop. (but I don't know if that is related to this next part).

Two days ago I was driving along like normal. I experienced a dramatic power loss. I shifted to 3rd (automatic transmission) and had the same power loss so I immediately checked my gages, of which the temperature gage was WAY off the chart hot.

I shut the car off immediately and coasted to a stop. I then noticed a trail of oil for about 200yards and oil all over the trunk and back of the car.

Here's the strange thing. I had it towed to my home and I filled it back up with oil. Started it up and see no oil leaking anywhere. But the car sounds like it has a diesel engine now. Starts fine, but sounds pretty bad.


So... What happened? Why did oil spill out all over the road? Did I ruin my engine? And if so, what do I need to do about that?

Thanks for your thoughts.