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The fault code is the IAC (idle air controller). I would inspect both rubber intake elbows from the air box and airflow meter to see if you can see any crack. You may have to use a small mirror and flash light. If you don't see any cracks I would suggest replacing the IAC.
Found a BMW service bulletin
SI B 12 28 05
MY'05 325xiA – DME Fault Code 211
E46 M54; 325xiA produced 09/04 up to 02/05
Customer may complain that intermittently EML, DSC and EGS lights are illuminated while driving. No drivability problems are experienced with the warning lights flashing. The following fault codes are stored in the control modules:
On a customer complaint basis only, reprogram DME with CIP 20.0, or higher.
CIP 20.0 is planned for release at the end of December '05.
The bulletin might not match your vehicle production date, but matches some of the problems you have described. If can double check your production date of the vehicle if you like.
If you make to sure you don't have any vacuum leaks get a smoke test done. If you can see smoke you have a vacuum leak. You can try to do the smoke test your self with a keep cigar and some rubber tubing.