So, here's my concern about towing MT BMWs on a dolly, which I have done several times.
I never attempt to tow them front wheels down. That's already been covered already.
(The UHaul auto transport isn't a bad trailer, but it totally stinks for really short lightweight cars (like old BMWs). Way too much tongue weight because you can't reposition the car farther back on the trailer to correct for it. They only load one way.)
Driveshaft disconnection at the differential or transmission output is the best option but on some BMWs it is really difficult to do that. It's not a slip-yoke transmission, there's a center support bearing, so even if I get the bolts out, often there's not enough play to get the shaft joint physically separated from the mating joint. Something else usually needs to be unbolted -- pretty much means freeing up the diff enough to get front-back movement, getting the shaft disconnected, then bolting the diff back up. Ugg.
Towing with the car in neutral and the driveshaft connected spins a fair portion of the transmission's internals the whole time. Some BMW transmissions can't sufficiently lubricate themselves unless the input side is spinning too. So, towing more than a few miles can push temperatures up to the damage zone in there, even with the car in neutral.
Other BMW transmissions seem to be able to handle it. I have yet to find much information on the internet as to which ones can stand it, and which ones can't. My experience with a Getrag 260 has been that it's okay for at least 80 mile tows regularly, but I haven't gone beyond that.
One other strategy: As far as I know, I'm the only one foolish enough to do this, but it has worked. I put the car in neutral on the dolly, start the ignition, pop the hood, and tighten the throttle cable linkage nut until the RPMs go up to about 1,800. That's equivalent to a cruising speed and should keep things lubed. But many tow dollies don't track well unless the front wheels are locked, so check this out and if you have one of those, use straps to immobilize the steering wheel.
The other problem here is the motor might overheat or lose oil pressure and you won't see it until the smoke gets pretty thick. On my track car I have already tapped into the oil pressure and water temp idiot lights, and wired in a pair of big-assed truck side marker lamps that suction-cup to my windscreen. It's just too easy to miss them flickering down on the dash panel while you're keeping your eyes up on the track. So if I remember to check my rear view regularly, I can probably spot trouble before it gets all China Syndrome.