Hi Jeff ... I was under the impression the LCM was the module near the glove compartment and usually cost like $400. I think this is what normally has the fault but not positive.
Funny I've had that blinking light for several months. My driver side headlight works fine just the adaptive portion doesn't work anymore. This was another reason I got the laptop GT1 - in case I need to recode another LCM. I bought a used one from from ebay for $85 shipped.
I'm still hoping I just knocked a wire loose inside the headlight from all my DIY work on the AEs, DRLs , bulbs, etc. One day I'll hunt the problem down but for now I'm too busy with too many projects!
Anyways, double check with the dealer. Might be the headlight but then again .... Don't let them just start replacing parts at your cost!
Part #4 Light and Check Control Module.
http://www.realoem.com/bmw/showparts...57&hg=61&fg=25