sounds like the actual latch mechanism is fubared, you better change those before your hood gets stuck like mine did and wont open at all !!
just call the dealer, you'd be surprised how much those latches are ( i think i paid like about 60 bux for them both..pretty cheap i would say..)
1995 325i- slushbox, cause i like it that way...
Soon2B- ??? - manual/stick cause i like it that way ?