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Sounds like a similar problem I was having with my e30. My indy mechanic would always adjust the cable for me to resolve the issue. Several times I was convinced it was broken and I was going to have to replace the mechanism... but he'd be able to adjust it and get it working again.
I haven't adjusted it myself... but I believe the adjustable part is numbered 6 and/or 7 - this is for the mechanism that goes from the latch inside to the handle outside.
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Adding my 2 cents on the hood emblem, I'd replace the grommets. My new trunk emblem was loose and I got new grommets, fits perfect now. I didn't bother trying the old hood grommets, I just replaced them. And a helpful note for anyone who's not aware: the hood and trunk emblems use different sized grommets.
So I fiddled with it again yesterday when I was washing my car. I can push the latch down by hand and it will be flush with the grills, but it won't stay there. And if I lift up on it after I pull the pop hood latch, it seems like I'm gonna break it off. It doesn't always lift the hood right away. I looked around to see what was in the wrong place or what wasn't working right, but it's hard because I don't know what a proper hood latch should look like/behave.
I'll take a look again and see if it might be 6 or 7 on the diagram but I'm not 100% sure where to find those.
There is a thin strip of metal that presses against the upper radiator support beam. It acts like a spring to push the arm into the kidney grill. You can try to bend the strip out a little and it will push the arm in. Try not to bend it too much or too often. I eventually had mine break and had to buy a new latch. It was only about $20.