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M42 engine gasket problem?



I know I asked this before, but here's another try...does anyone know if
the gasket problem was indeed corrected on later model 318's?  As I
said, my brother-in-law just purchased a '95 318i w/ 30,000 miles and
his mechanic warned him of this problem and suggested he purchase an
extended warranty.  Is this a concern?  What was the production date of
the modification that BMW instituted?
- -- 
john
'87  325 138k (Dinan Chip, Racing Dynamics springs/Billstein shocks)
'94  318i 20k  
http://www.hooked.net/users/johnt/bmw.html