Buzzcut is right, you will need a laptop (or a desktop with a long power lead !) with a serial port to use this. You can buy USB->Serial adaptors but from what I've read they can be a real pain to get working.

Hate to say it, but you probably should have bought the 1.4.0 version, it's USB based and would be easier to get running. I have 1.4.0 and it works well on my E53 and my wife's E46.