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I have a BMW X5 2006 3.0D. The car is just breaking one part at a time. In this case I had an issue like this with similar codes and took it to the only BMW dealer in the country.
The mechanic there told me it was the actuator gear. It was stripped once before and then I replaced the gear. I told him that when I took it off it moved like something was broken inside the transfer case.
Ok so I believed him took the car home. Took apart the actuator motor and the new gear was fine. Could feel the transfer case loose and what to do. Thought maybe it is the electronics for the control of the actuator.
So I ordered a new actuator $850 US. Got it put it in and still same errors. Took it to the BMW workshop and thought maybe it needs adaption. They could not get it to adapt.
They had a spare car with the same transfer case and swapped them over to test. Everything fine. Then he checked the feel of mine and it was loose where the other one is tight. So as the post above I will confirm that if you take off the actuator and can turn the transfer case spline it drives with your hand with no resistance it is the transfer case.
Cheapest price I can get online is $2450 US plus postage. From dealer installed I am looking at $4000 US here.
So these symptoms your transfer case is stuffed. With the current costs I have endured on this car in a remote location I am close to calling it quits. BMWs are an expensive piece of junk after 10 years.
Ok to answer another question the transfer case just balances power to the front wheels for all wheel drive. Even if it fails you can continue to drive on rear wheel drive. For the moment I will just be doing that. It only drives in town and in traffic jams so not worth fixing this.
In the last year I have replaced Air compressor, air bags for suspension, front thermostat fan, belts, the dpf has blocked up and I cleaned it and it needs a new one, just after I fixed all this stuff and it looked like rear wheel was the go from here on in. The vibration damper packed it in. Also have replaced manifold gaskets and oil gaskets. Still have valve cover gaskets and oil pan gaskets to go. They are all leaking. The car has done just under 200,000 km and is less than 10 years old. Plus the actuator I did not need and other things. The sunroof is stuffed and it is just one thing after another. And the broken door carrier. Up to 3 now.
It takes 8 hours for the dealer to change the oil pan gasket as some of the front suspension has to come out. Labour here is $75 per hour at the dealer and $5 per day outside is you can do it yourself with the help of others.
Seriously if you ever consider buying a secondhand BMW forget it. It is not worth it unless you want to slowly repair it over time. Ok will post a few other things elsewhere about DPF etc. but wanted to share this bit of info because I have unfortunately confirmed some information I read here. Good luck to all of you with your BMtroubleU.
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