OK Weasel, I took out the intake camshaft position again, when I got to it I noticed that there was a little gap between the sensor and the block:

http://i271.photobucket.com/albums/j...00807-1334.jpg

I took it out, and peeked inside:

http://i271.photobucket.com/albums/j...00807-1341.jpg

Looks ok. I cleaned the cavity and reinserted the O-ring, then reinstalled the sensor.

I also was able to get readings (with key in ON position) at the connection where the cps plugs in, and from passenger to drivers side got 12V, 5V, and ground at the three terminals.

Does this help at all? Was thinking maybe I got a bad sensor? It was not a BMW original sensor but it was brand new off ebay.

Most likely the gap was the cause of the problem, it is a pretty close tolerance in there. If not I have seen many people have trouble with the ebay sensors as well.

Well the gap was there even after I took it out, reinserted the o ring and secured it again. So there's nothing I can do about that gap. The symptoms have changed from before... Now it is sluggish right when you start it from cold. After warmed up you can turn it off and back on and it is a lot better. Before, it always ran good from cold, then after restarting hot it would be sluggish. Also, now the stalling problem is gone. In addition to how aggravatingly DOG SLOW this X5 is going, it gets HORRIBLE gas mileage. I went to detroit today and when running badly I was getting 18 mpg at 80 mph. After stopping and restarting, I got 20. Before this problem ever started, I got 23 at 80. On top of this being incredibly annoying and expensive, it is very embarrasing! Should the next step be dish out 100 bucks for an OEM cps? Would hate to do that if its not the problem! Thanks for the help...

Bimmerboy12---you need to compensate Weasel by a night out in NOLA for his input. I got a headache just reading through all of this. The only thing I've ever bought off ebay for my '01 is a cabin filter--other than that when it comes to parts always go OEM. Time to take it to an indy sounds like.

If you think thats a lot you should cruise through the E30 forums. This is child's play.:D
I visit NO twice a year and would be thrilled to meet up with Weasel and buy him compensatory beverages.:thumbup:
And why the hell would I take it to an Indy when I have far more reliable and knowledgeable information right here at my fingertips??? ;)

You said you are embarrassed, annoyed and it's getting expensive. You've exhausted all options to get it riding normal-- it's time for another set of eyes (ie an Indy). No sense sweating it---life is too short.

heehee Im a long way from exhausting all options buddy.. I think I've got this one, but thanks for your concern!
Now quit filling the thread with posts and let us get back to solving my issues :nanana:

You may want to use some RTV sparingly to plug the gap, as you already know air gaps are bad when it comes to engines.

I can't recall if you are getting codes or not nor do I know if you have the 6 or 8 cylinder engine. If you're getting codes and you have the 8 cylinder engine I would recommend you swap the two CPS's and see if the codes change. If they do that would be a good sign the CPS is bad. If not I would look elsewhere.

Please ignore if this has already been done. It's been a few since I read the entire thread and I can't recall all the diagnostic work that's been done.

You are on here for advice. My advice is your fix has not worked. At some point if it's not working then you will need another set of eyes. The longer you drive it with issues the more chance something else can go wrong. But good luck with your "options".