I suggest you get a repair manual for this vehicle if your going to be doing your own work. You can get an online subscription to excellent information here: http://bit.ly/mitchell_repair_manuals_online You'll want to be careful when removing the coil springs, it's potentially very dangerous, please get the right tools and be safe!
the best manual for the E34 BMW is published by bentley you can find one on amazon. do not even attempt this without your bentley manual! that being said, you can go to www.bimmerfest.com there is a step by step diy with pictures for pretty much every repair posted somewhere on "the fest" good luck.