Turns out it was a jammed vanos solenoid, which is a common problem. The dealer wanted to replace both Vanos solenoids and quoted me 260 for the parts and another 300 dollars for the install!!
Doing some quick searches I found alot of good info and it turns out all I need to do is remove the solenoids and just clean them (
http://www.e90post.com/forums/showthread.php?t=486201) which I am doing tomorrow. I will keep you posted on the results!