I am just making this thread incase someone does a keyword search on the same problem I had. I was trying to find out why my tire pressure light and traction control light was on at the same time. I read alot, but didn't get a definitive answer. I took my car to a local BMW Mini mechanic. He was a really nice guy and took out his machine and plugged into my car. When he checked my stearing wheel angle sensor. It read that my tires where turned 180 degrees when they were perfectly straight. Not sure how it ended up that way. So he just reset it to 0 degrees and then the lights went out for good. The lights were not on before, but then I had the engine changed and the lights came on. I am going to guess that when they disconnected everything they basically reset the system and the wheels where probably turned at the time. Then when driven straight for a few minutes the car triggered a fault thinking something was wrong because it was thinking the car was going in small circles. I am just guessing at that. It was not the speed sensor. Someone had told me it might be the stearing wheel angle sensor, but they didn't think that would cause the tire pressure light to go on. Hopefully this helps someone in the future.

 

I had problems on my 2002 MCS with the TPMS and DSC lights coming on at the same time for no reason. Resetting the TPMS would clear it temporarily. After the third time it happened the dealer replaced the Steering Angle Sensor and this cured the problem. I see where the sensor now costs over $200. Thank goodness my car was still under warranty at the time.

 

Yeah, the mechanic reset it for me also and the lights came back on a mile away. I came back the next day and he reset the stearing wheel angle sensor and it stayed off. I bet those mini peeps can fix it without replacing, but maybe they get paid for warranty work from mini. He just charged me 2 tri-tip sandwiches from my deli for the second work. First time he only charged $40. He seemed really honest. If you're in the bay area I recommend him. He is in downtown San Mateo, but i will have to get his info in anyone needs it.