I was just recently on a very steep hill. I was surprised that the car actually coasted down on its own without the HDC or brakes. It seems like it just locked up first gear. I have a 4.8, so don't know if the trans does something different.
What I do know that it is aggressive like no other, and when flying around, it also seems to hold gear in the power band. Which is supper cool for a big truck, especially when it holds 2nd gear for a block. Bliping the throttle gets it out of this "insane" mode.
Back on topic, what about transfer case actuator motor. There is a thread below, where the same lights turn on. Seems like the worm gear in the actuator motor fails, causing similar systems.
Next time it happens, get into some snow and floor it. See if you still have 4x4, or if only your rears spin.
http://www.xoutpost.com/bmw-sav-foru...tor-motor.html