BMW: 85 bmw 325e, bmw 325e, blue spark

Question
my son has had this car for about a month.  He stopped at a stop sign and the car died and now it won't start.  It wants to, turns over for about two seconds he gives it gas and then it sputters and dies.  He has checked to see that it is getting gas.  This morning he noticed oil in the intake.  any thing would help. We have asked a few people and they tell him to check all the things he already has.  We have changed the spark plugs, and checked the wires.  

Answer
Patty,
 The best way to fix the problem is to be methodical and check everything in order.  I know he has checked a few things already, but I'll add some others he may not have checked.  An engine needs 3 things to run: fuel, air, and spark.  If any of these aren't there... the engine wont run.

 Check for fuel.  Remove the fuel line that runs into the fuel rail (should be at the back near the firewall).  Place this hose into a soft drink bottle and have someone turn the key.  This should pump fuel into the bottle.  If it does then you know the engine is getting fuel and the fuel system is in working order.
 Check for spark.  Remove a spark plug from the head and insert it into it's plug wire.  Lay the spark plug on top of the valve cover where its touching metal.  Have someone turn the engine and watch for a blue spark on the end of the plug.  The plug must be grounded for it to spark, so make sure the plug is touching metal.  Dont hold onto the plug with bare hands, you could get a nice shock from the spark (it doesn't feel good, trust me).  If you see no spark then trace up the ignition line and find out where its stopping.  Remove the coil wire from the distributor cap and do the same thing as the spark plug, lay it on the engine or some other grounded metal and watch for the coil to fire.
 This will tell you WHERE the problem is; fuel or ignition.  
 Good luck,
 Josh