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First of all, that pic is not from an E92 M3; we don't have studs on our hubs, plus the rusted area inside the hub is A LOT smaller; no way I could fit anything power operated all the way to the back (next to the big nut), where rust was worst.
After reading this thread I removed all 4 wheels to detail (and familiarize myself with) that area. The rust on the rear wheels was really bad. Even after sanding with 220 grit until my fingers almost bled didn't remove it all, especially at the deepest part, but was good enough. And that anti-seize paste also caused rust, which didn't come off completely either. Did the best I could and put high-temp synthetic grease (M1) all around. The front wheels were a lot better inside, but the part that touches the wheel was equally bad (but much easier to fix).
I strongly suggest everybody remove their wheels and clean that mess as best as possible to prevent a problem in the future. I was expecting S/S on a $70K car, but it's not the end of the world. As long as rust doesn't keep forming, all is well. Take care.
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