Thanks to all for the replies. I just picked my '02 M3 last Friday. It had a registration check this morning at a local mechanic and when I was driving home the gear indicator was permanently flashing. Only having had the car a week my blood pressure went up immediately thinking of expensive SMG repairs. Soon as I got home I googled "M3 smg flashing gear' and hit this thread straight up. To clarify, the fix (in my situaton anyway) was the hood sensors inside the holes where the hood pins seat on closure. I sprayed some WD40 (lubricant) on the sensors and adjusted one of them that looked a bit askew. All fine now. Thanks again. Saved me the hassle of a trip to the BMW Dealership and the anxiety in between!!
Last edited by AussieM3; 01-29-2009 at 07:30 PM.
Reason: change wording