Got the results from the dealer today. Looks like its the Crankcase vent valve. So since its plastic and parts that is wear and tear, it's not covered under the warranty. $700.00 to fix. Called Tischer for the part and it was like $500 the same price I'm getting it for.
New - 2013 - 320i - 15% Tint - Future Mods ( BMS Tune, Suspension, Wheels, Exhaust)
Sold - 2007 328i (3-Stage Manifold - BMW Perf Intake w/Scoops - Powerbox - Magnaflow Exhaust - MMW Headers - KW Street Comfort - VMR 701s 19' w/M3 offset - BMW Strut Brace - 330I Brake Conversation - 5% Tint All Around - 8K HID Fog Lights -Angel Eyes)