I believe what he found and unplugged is the x-drive computer, which from the sound of it defaulted the transfer case into a mainly rear bias. I know how much fun the X5 would be as a rear wheel drive, but what he found is only on the 04 and up X5's with x-drive. Keep in mind it likely still has some pressure on the clutches in the case meaning you are likely causing wear, but it isn't actuating more power to the front wheels to compensate for oversteer... hence, drifting! As much as I LOVE drifting, the X5 isn't really set up for it. And keep in mind that after you do this you will have fault codes in numerous drivetrain and suspension control modules that can only be cleared with BMW testers (GT1).

But before you plug it back in and clear the codes... try to get a really good video of drifting, figure 8's, donuts, etc...!

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X5 pics

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2003 4.6is