Thank you for the write up.
When trying to perform step 7 i got the error "security access denied" and the flash would not proceed.
I had to change the configuration of WinKFP for fast baud rate to successfully flash. Seems like there are differences from ECU to ECU.
My update to the dynamic drive ECU required the fast baud rate to be disabled.

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Silver 2004 BMW E66 / 745Li (DIYs):
ASK, Logic 7, blower, battery, guibo joint, active stabilizer bar bushings, diff oil, tranny sw update, vacuum pump gasket, window lift, a/c compressor, washer fluid reservoir, belt tensioner and deflector, crankcase vacuum hoses, crankcase vents, solenoid gaskets, headlight overhaul, ISM, hood lifts, driver mirror, sway bar end links, rear fog lamps, headlight washer
next up:
headlight vertical aim, VCGs, P0492