Getting all sort of errors trying to post to some of the other threads
out there so having to post this is a new discussion - How to reset
the service indicator from the dash - from our friends on another
forum.
Two procedures for lights and text version of the indicator at
http://bimmer.roadfly.com/bmw/forums/e46/5040843-5.html

In a nutshell, for text version -it appears to be -
with your buttons in the dash by the dials
ignition off
hold down the left button
turn on the ignition 1 - still holding down
wait for 5 seconds until you pass the 'test' bit and get 'reset'.
release, then hold down again until 'reset' starts to flash
release then tap it once.
R