[QUOTE=brucemillar;1127536]Did you have to drill out the old sensor? I had a similar issue (trifeca and air gap) on my older 5 Series. It turned out that in drilling out the old sensor I had scratched the surface of the wheel bearing/reluctor ring. A tiny almost unnoticeable scratch, but that was the cause. The cure was a new wheel bearing. I have also read, of others "adjusting the air gap" by inserting thin washers to raise the sensor. That may be worth a try before opening your wallet to more abuse.

Did you ever do a live data test to find out if the ABS sensor was sending speed (or any speed) information back to the computer? I have the air-gap code, after having changed the CV axle (and banging hard). The ABS sensors are clocking all 4 wheels at the exact same speed. So if it was a reluctor ring issue, wouldn't I get either different or no speed? I also get no DSC signal at transfer case.