BMW Repair: 1993 BMW 325is clutch, clutch master cylinder, 1993 bmw 325is

Question
when clutch worked it disengaged up high on the pedal. Then one day had to
push pedal all the way to the floor, next day some grinding , finally it would not
shift with engine running.  Seems to shift with engine off.

Answer
Bryan, You have a problem with the Clutch hydraulic circuit. The Clutch pedal is depressed creating Hydraulic pressure from the clutch master cylinder (filled with brake fluid, shares the same reservoir as the brake master cylinder) piston moving compressing the brake fluid through a hydraulic line to the slave cylinder mounted on the side of the transmission. The slave transmits the pressure upon it's piston attached to a rod that releases the clutch via a throw-out lever or fork. You have an issue in this circuit, be it an external leak or internal leak past internal seals. If you can shift gears without the engine running then this is definitely a clutch or hydraulic circuit issue. I personally would replace both the clutch master cylinder and slave cylinder, due to age and wear. Flush the system. Also not a bad time for a brake fluid flush since it is the same reservoir. Not sure if that explaination of system operation was helpful or not.
-Evan