There is oil leakage from the final drive, around the part where the rear wheel fits in.
I have taken the wheel, the break disc, the break caliper, and the cover there off. Don't really know what to do next.
Please assist me

I just consulted the manual and realized hopelessly that the tools required to change the oil seal on the final drive are not available hear in my country.
I think my riding days on this K are either very short or over.

Check the surface where the seal runs on the centre boss and make sure that it is smooth and undamaged, run your fingernail across the surface and if you can feel any groove then it needs replacing or repair. A good engineering shop will advise you on repair. If it is OK then put a new seal into the case and a new O-ring and replace the cover.
While the crown wheel is out check both bearings for wear and replace them if necessary. the large bearing will cause the seal to leak if it is worn badly. If the small roller bearing needs replacing you would be well advised to check the gear meshing, if you cant do that then any competent mechanic would be able to help.

PS that would be refering to the seal on the front shaft not the seal where the wheel bolts on

You could also try this auto trans treatment it will make the seals soft again. http://www.ramy4x4.com/product.php?id_product=555

I've just replaced 2 leaky final drive seals and it's very easy.
Put the new seal in the fridge to cool for a good few hours,this will shrink it slightly. Remove the old seal and clean all adjoining faces. I used Scotch Bright to clean the housing and shaft.lightly grease the clean surfaces,then press the cooled seal in with your fingers. Be careful not to push it in too far.

Good luck.

really, so I shouldn't have removed the final drive cover?
If so, why does the Clymer's make it very complex, listing a whole lot of equipments and procedures required before one can remove the seal?

I've no idea why it's got to be complicated.
Dig out the old seal,fit a new one. The method obviously works because I've thrashed my K around Spa and several track days since without any problems.

Thanks Mike, I'm gonna dig out mine too, and look for a new one to buy. I hope I get a new seal to buy here.

Remember to take your time & be careful.
I'd never changed a seal before and I did 2 at once!!

I will. I only hope I get those seals to buy

So far I haven't been able to get the seal off. How did you do it Mike?
I tried with a flat screw driver, and then a knife, but I couldn't get the seals off.

I think I just used a fairly large flat blade screw driver and prised around the seal bit by bit.  Ease the driver under the seal lip but be careful of the shaft. Once the seals grip is broken it will come out fairly easy.

Trust yourself!! 

Did you prise the inner or outer diameter of the seal?

Inner-between the seal lip and the shaft.

Shaft?

The bevel output shaft or hub that the wheel bolts onto.

If I take out the seals and don't get any on the market ( very likely in this part of the world, no bmw dealer shops), will the old one be in a state I can reuse together with a stop leak treatment? that is if even I'll get a stop leak treatment to buy here.

Getting the seal out WILL destroy it.
Try MotoBins or Motorworks in the UK,they will ship to you.

Thanks Mike

Given that the following WILL destroy the seal:

Drill a couple of pilot holes on opposite sides of the metal part of the seal, making sure it only penetrates the seal and does not contact the bearing.

Use a couple of self tapping screw, and screw them into the holes. 

Grip the screws with mole grips or pliers, and pull the seal out.

Mike

I got a new seal, after installing the seal and putting the final drive cover on, the wheel hub does not rotate even though the engine is in neutral. when I loosen the bolts on the cover, it rotates, but when I tighten the bolts again, there is no free movevment

Did you put the shims back where they were, if they are not there and in the correct thickness the gears will bind so tight so as not to turn.

Thank you. But I've already rectified the problem. I had taken out the ring gear before removing the seal, upon installation, I hadn't pushed it out suficiently and so when I tightened the bolts it stack to the inside, not allowing rotation. I took it to a machine shop and had it pushed out with a press mechanism and that solved it.

Thanks again for your readiness to help.

good to have it sorted now to ride