The susp. inactive warning sometimes comes on when you do work such as you have done. As long as it went out after you drove a bit you are OK.

Where you set the link is up to you. Obviously, if they are "tight together" the rear will be lower. Also bear in mind that changes to either end will impact the other end in the opposite direction to some degree.

When I first installed the links I didn't like the way it was setting so I turned the links until they were tight together. I didn't like that either. Now they are a couple of turns shorter than they came but some distance from tight together. I wanted the gap on both ends to be the same but within 3/8in. is about all you should expect.

Again, it is your preference.

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X5 4.6 2002 Black Sap, Black interior. 2013 X5M Melbourne Red, Bamboo interior
Dallas