changing out the VCG's isn't all that hard, maybe just a little time consuming. If you were planing on changing your spark plugs, boot, or ignition coils, now would be a good time as those have to be removed to install the new VCG's. Aslo the rubber in the VCG's may be brittle and dried out so carefully remove them as to not get any pieces of it into the engine. Make sure you also clean off the engine lip that the gasket sits on to ensure a proper seal.

Thanks for the suggestions! Do you know of any good DIY's?

I did a reading for the SES light and it came back with the fault code P1431. If anyone is interested...this is what I found on the m3 forum (hope it fixes it!):

What these codes mean: Diagnostic Module Tank Leakage Malfunction

Reason: Apparently this happens with age, so therefore you will eventually have to replace it. Otherwise, the SES light will just keep coming back on. I cleared it 4 to 5 times and it seems like everytime after 500 miles or so the SES light comes back. I took it to VAC motorsports, they had no clue what this code means as they never encountered it before. I did some research on the forum and found that it might be the DMTL pump that failed. Therefore I replaced it, its fairly easy, but the part is fairly inexpensive. The dealer will attempt to charge you $350 dollars for it. SO I did it myself, took probably an hour. Unfortunately I didn't have a camera to do DIY, but if I can do it (not mechanically inclined) you can too.

Part #: 16 13 7 193 479 Tischer BMW
Price: $132.38
Tools: Ratchet with 8mm socket/T20 socket

DMTL pump:
Located under the Black plastic cover right behind the exhaust. It has a total of about 9 / 8mm screws (3 on the exhaust heat shield, 1 on the bottom of the cover, 4 screw caps around the cover coming from the car, and 1 connect to a splash guard near the passenger wheel). Take the cover off and the the DMTL pump is held on by 3 T20 screws (Don't be alarmed if the pump you see on the car is all black and the part you got from BMW is half black and half white, I guess that's just a newer version.). Once the screws are off, then you take off the sensor from the back of the pump held on by clips on each side. Then on the side, there is a large black tube that goes into the pump which is held on by a clip and you unclip that as well. The last part of the pump is fitted into the EVAP canister by a rubber fitting, all you have to do is just wease it out. FYI, take pump that you purchased does not have the rubber fitting therefore, you take the rubber fitting from the old pump and fit it on the new pump. After that you reverse installation and you're done and clear the code on the car. I actually just installed it today and I will update this if this solves the problem. Hopefully this helps as a DIY, but again I apologize if I couldn't provide pictures, but its fairly easy.

Is there a way to test for a leaking VCG (vlave cover gasket)?

Sorry, I have the inline 6 (3.0) engine and it looks like you have the 4.4? I don't have a DiY for the "V" type engine, just the inline. The best way to test your VCG is just to look. Check your oil level and note where it is at. Carefully clean your engine top end with engine degreaser or cleaning product you may want to use. Check to see if there are any signs of fresh oil or residue after the engine is cleaned. The VCG aren't too expensive to change out and are quite easy to do if you are mechanically inclined. I changed mine at 60K miles and it was so brittle that the VCG was melted stuck to the valve cover and when I tried to take it off, it broke into small pieces. Most get this way and crack so oil leaks out. If you aren't loosing oil, have rough idle, and your engine runs good, I wouldn't worry too much about the smoke.

Thanks albarran,

So I'm trying to understand how bad VCG's cause smoke. I can see how bad CCV's cause smoke from the tailpipes - oil gets gunked up and burns oil from the inside. But if I had bad VCG's wouldn't the oil leak out and cause smoke from the hood? How would bad VCG's translate to smoke from the tailpipes?

(Sorry if the question sounds dumb, I'm just trying to wrap my head around how everything works)