is there a difference between manual and automatic transmission fluid?
 

I have a 1996 318ti 5 speed Manual. I need to replace tranmission fluid. I was wondering if there is a difference between the manual and automatic transmission fluid? are they both same?

There is a difference... Here is a reference and DIY link;

http://www.pelicanparts.com/bmw/tech...Diff-Fluid.htm

Your transmission probably has a sticker on it that says to fill it with automatic transmission fluid. Mike Miller, the tech advisor for The Roundel and Bimmer, recommends manual transmission fluid. Specifically Redline MTL. That's what I've been using in mine for the last several years. The shifting is much smoother with the MTL vs the ATF.