Yup - that what those disintegrated rubber bushings do!
Go to the other thread in here where we are discussing George's fork problems, or find the link to my thread, "does my damper rod assembly look odd..." and on the 2nd page of that you'll see pictures of the parts you should order.
If you were gentle and carefully clean those (3) thin "piston rings" and they aren't bent or overly worn, you can re-use them. New ones are about $7 apiece and the new ones have a slightly different cross section - not as good as the originals if you originals are OK. But, do get the new (red) topping out bushing, and while you're at it, a new white plastic valve washer, and possibly a new drilled damper valve top plate. Looks like you've got the older 1 piece damper valve. You *may* need a new circlip with spring teeth (like Georges). Also, BE SURE to get new crush washers for the forks for the drain bolt, bottom big allen bolt, and for the top filler plug - they are cheap and you REALLY don't want to reuse one only to have it leak on your new brake pads after you're taking her out for a shakedown ride - I've been there and would have happily paid the 59 cents to have avoided the 2-hour tear down again!
Call up MAX BMW over in No Hampton NH and ask for Rusty in the parts department (or Rose Marston can also help, but Rusty is DA MAN when it comes to airheads and part numbers). Tell him Mike Fugere sent you and that you need parts for your R65 forks - you can give him the parts numbers from my package pics in the other thread, or you can have him open my order from June to get numbers for some of the stuff you need.
I've got stuff lined up for this weekend already, but if you get in a jam let me know and maybe I'll find an excuse to ride down your way sometime.