If you are talking about something like this?
Then it is not as bad as you think, but you really should not be driving the car in this condition because as you already said, there is a possibility that the struts could poke through into the hood.
First you need a new 'Guide Support'. No. 1 in the following link:
http://www.realoem.com/bmw/showparts...48&hg=31&fg=10
When I replaced mine on the Roadster, they were about $45.00 each from BMW.
The stuts must come off of the car to replace these. No special tools required except for coil spring compressors (which you can rent from Autozone or Advance) and you can do it in your driveway or garage.
When I did this, it took 90min for the first one and 35min for the second one....
After re-installation, you will need to get the car realigned.
Looks bad but it is pretty simple repair. This is a common issue on older BMW's.
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