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Regarding the speedo sensor, it is on a rear wheel to my knowledge. On a previous 530D that I had it was on the right rear wheel. The speedo stopped working on it once and replacing that sensor solved the problem.
I can now also report that I'm half way through the swap out of the diffs. I picked up the 3.73 versions and all looks good so far. The rear seems to be very straight forward and so I have left to the end. However the front requires a little more work. I've only had a little time at it yesterday evening so far. Anyway so far I've had to pull out the front half-shafts by loosening the front wheel carriers. the shafts are out of the way the CV joint housing can be pulled out from the diff (there is a special tool to do this but I just used some ignorance to persuade its separation). The prop shaft to the diff was easily disconnected as too were the four diff mounting bolts. So solid progress was made in under an hour but then brought to a sudden halt due to the fact that the available space to remove the diff through is a little on the small side and will need for me to drop the K frame (which engine is mounted to) about 20mm. This should allow the diff to slide out from the side. BTW the K frame is held in place with bolts that require a female Torx socket to remove. Unfortunately, mine only go up to 16 and I reckon I need an 18 or a 20. I hope to pick one up later today and get back to it. So fingers crossed for the next hunt. I'll report back when I get further along.
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