I got it running again. The problem turned out to be the bronze bushing in the front end of the Sun Shaft. When I rebuilt the transmission last year, I found some bushing clearances pretty large causing blow by, so I purchased the bushing kit from Omega Machine (Omega Machine & Tool Inc. OOPS!). DO NOT BUY THIS KIT! I had already made one myself for the stator shaft, as the one in the kit had more clearance when installed than my 170,000 mile original one.

The front one in the sun shaft had moved forward flush with the end of the shaft (should be inset about 10MM), and when I pulled it with my fingers it came out! The oil flow to the "C" clutch passes through the sun shaft, between the two bushings, to get to the clutch. Evidently I had enough leakage through the moved front bushing to cause the C clutch to not work. I bought some more bronze stock and made a new bushing myself, and now it works like new.

I still have one thing that puzzles me though! I tried yet another EGS module, so that makes three, and all of them activate Solenoid 1 in reverse instead of Solenoid 2. I have THREE solenoid charts, one from ZF, one from ATSG, and one from a Range Rover manual (shared engine and transmission) which all show Solenoid 2 activated in reverse. Evidently BMW does it differently, but it works!

I sure would like someone with INPA or other software to check their '98-'01 E38 or E39 to see if this is the same on theirs!