sennamanuk

I have a problem that I am a little confused about I have water in the oil but it doesnt seem to have lost any, doesnt overheat or run badly ? Someone said it might be an oil cooler but its not an auto, its a 328i Manual Cab 1997. I am at the point of deciding what to do with the car, its in good nick but a head gasket job is well expensive I have been told Many thanks to anyone that could help??? Cheers Andy