Guys, this wheel shimmy is common and is a combination of hub-centric for those using non-stock rims, wheel/tire itself is not well balanced, wheel bengkok, and also possibly worn thrust-arms.
Method of solving to start with easiest and cheapest method and work your way up.
1) The front axle wheels are causing these , so make sure the *best* pair is in front, with tires same make and same condition. If both balanced properly, check if hubcentrics are needed. Get them and install them. You can source spacers which are hubcentric.
2) Go to tire shop and get a wheel balancing done on BOTH front wheels. Make sure the mounting is done correctly, the rusted hub needs to be lightly sanded and cleaned, and so does the aluminum wheel side that makes contact. Alum and steel will rust due to different metals (just chemistry). Bolt and torque lugnuts correctly.
Test for it. if the shimmy goes away. It might just come back again after several months. Uneven wear on the tires like flat spots can cause this easily. So check tire conditions. Put your best tires up front.
Worn thrust arms can make the situation worse. Typically causing "violent" shaking around 90-100Kph speeds. If you test it on the highway, it should be very consistent in the shake coming and going.
Good luck guys. I think this shake is the direct result of poor suspension design for E34. AT least on the front-end.
