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I just want to thank the OP for this thread.
I just went through this. Got the P0335 and P1727 codes and engine in limp mode last week. I ordered the Continental VDO (OEM) crankshaft position sensor and o-ring from RMEuropean. I installed it today and it fixed all of the issues. CEL cleared after I cleared the codes with my OBD II code reader.
The Continental VDO crankshaft position sensor was $72 while the BMW sensor was ~$125 at another online vendor. The original removed sensor had "BMW" and "Siemens VDO" stamped on it while the new sensor just had "Continental VDO" but you could see where the "BMW" mark had been partially laser etched off. The notch in the electrical connector lined up exactly the same as the original and the connector fit perfectly.
I initially installed the electrical connector before installing the sensor in the block, but the o-ring didn't want to seat with just finger pressure. I removed the electrical connector and used a 11/16" 1/2" drive socket and 6" extension to fit over the electrical connector and used that to push the sensor into the block and seat the o-ring.
Another thing I did was put some masking tape over the end of the E8 socket and shoved the head of the sensor bolt into the E8 socket. This held the bolt firmly while I guided into the hole with the socket and 3/8" drive extension.
Not a hard job. Kinda hard to see what you are doing, but I've done worse (2006 Nissan Altima 2.5L crankshaft sensor is way worse). It took more time getting the cowling cover and air filter box removed and re-installed than it did to remove and re-install the sensor.
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