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Hello everyone! I have an 02 530i with the sport suspension and am having to refresh the front suspension at the moment. We encountered an electrical switch on the passenger side with an arm and tiny ball joints that I can find nothing about at the moment. The joint where the arm connects to a clamp is rusted away and pops loose. Anyone have an idea what this does and the proper name of it? Here is a pic:
 

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I may be wrong but that should be the ride height sensor for the headlights???
Yup. and OP will find a similar unit on the rear suspension.
 

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Hello everyone! I have an 02 530i with the sport suspension and am having to refresh the front suspension at the moment. We encountered an electrical switch on the passenger side with an arm and tiny ball joints that I can find nothing about at the moment. The joint where the arm connects to a clamp is rusted away and pops loose. Anyone have an idea what this does and the proper name of it? Here is a pic:
I may be wrong but that should be the ride height sensor for the headlights???
It is also used for the DSC.

Part # 6 or 7 in this link, depending on how yours is mounted.
 
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