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I own a 1992 325i and I just bought a Peake Research R5/FCX-II Code Scan tool. Each time I try to use it, I end of with a Flashing E message. Apparently its a communication error.

Any ideas out there on how to troubleshoot this?
 

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I just got the same tool.
Page 27 of the manual says: "E means the car is not responding to the tool: This happens when the data line (also called "diagnostic bus") inside the car is "hung" or disabled.
In that page are several thing to try to resolve the flashing E. Do you have the manual?
 
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