For whats it's worth. I bought a front ABS wheel sensor and replaced the drivers side front sensor. This solved the problem. The lights went out and the ABS system is working perfectly again. I had actually removed and packed up the ABS module to send it to module masters for a rebuild. Something made me search the archives one more time and found where several members had sent in their modules for repair only to find out that they weren't broken. I wasn't sure which front sensor to replace so I just picked the drivers side and got lucky. Also, I had to replace the ABS wheel sensors on my e39 a few years back and remember that one of the front sensors going bad caused the transmission to go into fail safe mode, stuck in 3rd gear. So i'm assuming that it was the passenger side front sensor. I hope this write up helps someone in the future. Thanks for all your support.

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01' x5 sport w/ 58k miles
97' 528i w/ 101k miles
94' 325i vert w/ 75k miles
All white with beige int.