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I experienced the same problems as well. When the battery tested as bad, I replaced it and tried to reset the codes using Bimmerlink. After seeing your solution prabhurc , I checked the bay to look for chewed wiring. BINGO!
Took it to a dealership and the wiring harness at the power steering was completely chewed off. I am little more south in Texas from you, so it cost me a little south of $400.
Thanks for sharing your solution.
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