I saw a certified BMW mechanic do this in a dealership. I asked him if that method burns something out or causes damage. He said no dealer spends hundreds of dollars on a contraption to do this. They all do it this way.

Sure enough...I've been doing it to my '87 for 14 years, and nothing has gone wrong.

In the new edition of the Roundel magazine,on page 72 there is an article explaining the process of getting those bothersome service indicator lights off such as the ones that say you need to change your oil etc. Instead of having the dealer do it, they say that we can turn them off ourselves with a contraption called "The LiteOff". It is powered by your car battery and covers all BMWs after 1987, 3 thru 8 series. The article doesn't say how much it is but did leave a telephone number to call where you can purchase it. 603-491-1469. I haven't called yet as it's Saturday and I just read the magazine this morning. I would imagine they will be in on Monday...or is that a Holiday?
Kurt