According to
http://www.unitedbimmer.com/kb-e36-c...faults-faq.php a squeaky clutch pedal is a pretty common problem, and like lightflyer said, you probably just need to replace your clutch arm bushings, you can get them cheap here:
http://www.uucmotorwerks.com/html_pr..._arm_bushings/
and another 15% off this week if you use the coupon code "15TURKEY"
