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What code are you getting on the BT? I've got the same issue (DSC, 4x4, ABS, etc. errors). I can't recall the code I got off my BT, but my local shops (not BMW, I don't have a dealer near me) have no clue what it is. Error is something like "Transfer case, clutch position unknown" or something like that. I suspect the motor in the transfer case, as I put a multimeter on my wheel spped sensors and all were good. Your issue could be wheel speed sensors, if one is bad, it will throw the whole 4x4, DSC, ABS off.
Also, the DSC comuter is the same computer/controller that controls the ABS (or so I've ben told). It is located under the hood, on the driver's side, under the cover near the windshield (not the cabin filter cover, it's the small cover near the fender). If you take that cover off, you will see a "thing" that has all the brake lines going in it. There is also an electrical connector that attaches to a black part. The part that the electrical connector attaches to is the ABS computer/controller (not the silver part that the brake lines attach to). IIRC, it's made out of black plastic. You can remove the electrical connector (it's kind of odd, but there is this piece you pull up on the connector and then the connector will slide out toward the passenger side, I think). However, on my car (2007 328xi), it's almost impossible to remove the ABS controller without removing the brake lines as there isn't enough room to get a wrench/socket/etc. in there to remove the bottom 2 screws that hold the ABS controller onto the silver part that the brake lines go into.
If you are so inclined, you can remove the ABS controller and send it in to a place to get it checked out/repaired. There is a place in Idaho called module masters who will rebuild the unit for $300. They also check the units before repair and don't charge you, except shipping, if the unit tests good. I have done this on my A4 before with great results. I had mine in my A4 repaired about 3 years ago for $150 and it still works perfect.
However, in my case, with that BT error saying transfer case clutch position unknown, I'm not sure repairing the ABS controller will fix my problem. It's too cold out right now for me to try to remove the ABS controller, so I may wait until spring to check it out.
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