Just thought I would chime in with another success story after following this guide. I cannot thank the OP enough!!
I had taken my 328i coupe to a local repair shop to replace a faulty water pump that lead to overheating (a $1,000 repair in itself) and asked that they also take a look at the DSC malfunction. It had been a problem for about a year and had all the standard symptoms: myriad of errors reported upon startup, no cruise, turn signals would not shut off, etc... They said I needed a new steering angle sensor and it would cost another $1100! Naturally I just said that I could live with the problem and that's when I found this post.
I followed the instructions up until the soldering steps, and just settled for a good cleaning of the optical disk, the LED sensor, and the shield covering the sensor. After putting everything back in place and starting the car again all the malfunctions still popped up, but upon pulling out of the driveway they all disappeared and everything seems to be working as expected after a couple hours of driving.
Last edited by Fosterside; 06-16-2012 at 05:24 PM.