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Regulators are a pain in the ass for how often they fail... but they're also an easy DIY. Will only cost the price of the part ~$100. Also, look for an independent to do that kind of stuff if you don't want to do it yourself. It should only take about 2hrs tops. $500 is an absurd price and I was quoted that once and laughed in the guys face... especially after he told me it took 4hrs.
As for the lights, as stated, it's the contacts of what the bulb sits in. Either go to BMW and buy new ones or file and clean them and put some anti-oxidizing lube on them. Check all contacts for corrosion... it's a known BMW issue.
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