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So, What the Heck
is an OBD?
No, it doesn't refer to your Old Bald Dad. It's On-Board
Diagnostics. Federally mandated On-Board Diagnostics, no
less. That's right, brought to you by the Gu'mmint. A big
change in OBD systems happened in 1996 when manufacturers
changed from OBD I to OBD II. What's the difference, you
ask? (I knew you were going to ask that.) I, the difference
is I. (Get it?---OBD II minus OBD I equals I, like one.
Get it? It's a joke. Oh, never mind.) The earlier OBD I
system was relatively simple and not very restrictive. OBD
II is both much more complex and also accompanied by more
stringent emissions regulations. The net effect of these
is that when BMW redesigned the induction system to meet
OBD II emission requirements, they had to increase displacement
from 3 liter to 3.2 liter to keep from loosing horsepower.
So the trick set-up is to do an OBD I conversion on the
later engine. That is, remove the later restrictive intake
manifold, all the OBD II sensors, the wiring, and everything
else from the 1999 injection system, and replace it with
the intake from any VANOS equipped OBD I system (1992-1995
325i or 525i). 
There are a few hurdles to jump when going back to an OBD
I system. Both systems have VANOS automatic cam timing systems
on the front of the intake camshaft, but the electrical
connectors will not interchange. While it may be possible
to cut and splice the shielded wires to switch the connectors,
we think it's more reliable to change over the VANOS units---and
that's not a simple process. First, the oil filter housing
is in the way and has to be removed. Then we have to secure
the cams with a special fixture during the actual removal
and replacement of the VANOS units in order to keep the
cam timing correct. Finally, the timing chain has to be
retensioned to complete the change over.
Another little hurdle comes from a change in the temperature
sensors in the cylinder head. The newer head has only one
sensor; the earlier head has two. Fortunately the newer
head still has the casting boss, so drilling and tapping
an additional sensor hole just takes a few minutes of careful
work.
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