Hold down the left dash bottom while holding the button down turn the key on then letgo of the bottem and pres and hold again till reset flashes letgo and pres one more time
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indicator lights come on often when the sensor has failed and needs replacing the computer itself may be faulty and is not resetting and may need to be replaced
The way to reset any E46 BMW (3 series 1999-2005) is as follows:
Turn the car off and then hold in the odometer reset button on the left side of the dash. Turn the key to on but not start. Hold for a few seconds and the service reminder will show in the instrument panel. Release then double push the button and the service reminder will reset. If you just keep single pushing at that point, you will be surprised about all the information you can learn.
You can't use a tool to pull codes from an '87 BMW 325(e). You have the 2.7 liter and your DME, or computer is a Motronic. If you had a 325i, then a tool could read the codes because the computer was upgraded that year to a Motronic 1.1 system with a round plug in under the screw cap on the driver's side under the hood. The only tool you can buy is the one for resetting the service interval light and resetting the oil change light. To answer your question about going about finding your driveability problem would be to get a BMW Bentley Manual. This manual shows you how to use a standard voltmeter to check everything from your computer plug in. Your computer is located above the glovebox.
the brake pad warning light is controlled by a sensor located in the front and rear brake pads, small contact with 2 wires that plud into a harness, if they are bad I think the replacement cost is around 5-10 dollars for a new one, there will only be one in the front and one in the rear, the service light is turned out by a special tool at the dealer
press the satrt button with foor off the brake until lights turn on,close the doors and press and hold the trip button on the inst cluster,abs will come up and then go,than you will see all the diff cbs requirements on left side press button until the brakes come up and press and hold again, it should reset to ???tkm
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