There is another operation, in ATL area, quoting $99 plus for the ABS repair,
ABS Module Repair | ABS Repair | ABS Module Replacement. I have emailed them for info and to see if they are set up to diagnose out there; if not, I'll have one of the local indy shops with DIS hook mine up. I have yellow lights plus the 'red' brake warning, but the message is just 4wd ....

I saw them advertising on ebay as well, seem like a good operation and definitely close to you!

Is is possible my X5 is possessed by Satan? I am having serious thoughts about this...

So, a week or so ago, I got the 3 lights, and when I checked, it was making the clicking sound. I consulted with my mobile mechanic, and ordered the new gear part. When it arrived he came over, opened up the actuator, and sure enough, the gear was stripped exactly the same way it appears on the youtube video. Swapped the gear, reinstalled the actuator, and all is good... NOT.

The ABS and Brake lights are now off, but the 4x4 light stays on. So my mechanic has his buddy come over with the BMW computer, but no luck there.

So this afternoon, I take it to my local Indy and he says he won't touch it, but suggests I go to another place about a mile away. Get to this place, and they are so jam packed, there's nowhere to park. I pull into the alley behind the shop, and he says come back tomorrow.

Rejected, I drive home, and just before I pull into my driveway.... the 4x4 light goes off! I can hear the Angels singing to me. I turn off the motor,and turn it back on again. All clear, no lights. Before sharing the miraculous news with my wife, I think I better drive it around the hood for a few miles and make sure the lights stay off. Almost back home again..... ZING! 4x4, ABS and Brake lights come back on again. No clicking noise when I shut off the motor. Now I'm depressed.

I am almost ready to give up, but if anyone knows a great Indy in the West LA (Westwood, Santa Monica, Century City) area, please send me a PM. 2005 3.0L 91K miles. I am original owner, and the truck has been well maintained, or so I thought.

TIA

Went to one of the local shops that could hook mine up this afternoon and their computer [autologic] diagnosed as transfer case [I didn't get the code], not a sending unit or the abs module, as the tech anticipated. Its a Bosch authorized service center. Their remedy is to replace the transfer case [something they do frequently with Land Rovers and have had to do with X3s] to the tune of five hours plus parts, e.g. $3500. I'll get a second opinion Monday, and haven't yet checked for the signature 'click' of transfer case actuator/plastic drive wheel failure. Regardless, I'm not motivated to try the $3500 solution, and will continue to research, but would appreciate any direct links [beyond what's in this thread] to a DIY or how-to for transfer case/actuator fixes. Thanks in advance.

Here's a video DIY

https://www.youtube.com/watch?v=3xEJbpVupuw

I'm with you. $3500 is too much to put into this auto at this stage of the game.

Bingo! Got the tell-tale clicking sound, signaling the problem is the stripped gear in the transfer case. The shop who did the autologic diagnostic quoted $3k plus to replace the transfer case as a solution. Instead, I could do the 'no cost' rotate the gear, but have instead ordered the $35 amazon version replacement, carbon fiber reinforced gear. I figured since I have to pull the actuator motor, I might as well replace rather than turn the gear. As always, knowledge [from here!] saves money!

Awesome! 35 is a fair amount less than 3k.

I think mine is a wheel speed sensor. I keep getting left front on INPA as well as EBV fault.

Told you man! Nice to hear, enjoy the affordable fix!

Josh your wheel speed sensor code might be the ABS module because it does throw false wheel speed sensor errors when it goes bad. If you lose cruise control or your speedo when driving though it is probably one of the rear sensors

Took mine to local transmission shop since a new gear didn't fix the 4x4 light, and they are telling me same, rebuild transfer case at $3-4K. I told them no way. They are going to look for a used one, and give me a price to R&R.

Been reading more threads, and learned something new. Transfer case fluid is supposed to be replaced. Any chance a fluid change might solve the 4x4 light issue? ECS sells a kit for $66... if there's a chance.