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Great News!
A BMW rep called, apologized and said that they were indeed going to honor the warranty and replace my vanos. During that call I learned that E46 M3s are indeed having a high number of vanos failures and because of the large number of claims, BMW is now requiring all dealers to notify BMW before replacing vanos on all E46 M3s (presumably because they are trying to isolate the exact cause and determine whether they should do a manufacturer recall and, if so, on which model years).
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