If the ABS (and likely the traction control) light came on at the same time that the speedometer stopped working, you likely have a faulty wheel speed sensor at the right rear wheel. You can test this by swapping the two rear wheel speed sensors (ABS sensors). If the speedometer then works (but the ABS & Traction control lights stay on), replace the sensor that is now at the left rear (was at the right rear). If no change, you may have a fault in the ABS & Traction control - control unit.
Rear wheel speed sensor at www.bavauto.com
http://www.bavauto.com/shop.asp?HC1=0&Htarget=search.asp&HCY=2001&HCM=330i&SearchStr=rear%20abs%20sensor
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