I just bought a 1997 Z3 2.8 so I really don't know for sure what's been done to it before me...

The airbag light on the dash is on, is there anyway to reset this without getting that $130 tool? I know that is comes on when you take seats out and I did this, then found out the light was burnt out on the dash, so it may have been "on" the entire time or just after I removed the seat, no telling.

Also the horn doesn't work.

All fuses are good.

Do I need to disconnect the airbag/horn on the steering column? If so what's the correct procedure so I don't set it off.

Please help, thanks.

I've heard that you can take a paper clip to to your port, find the correct hole, and insert it, to ground out the connection... Do at your own risk... ive never tried this procedure, just had a friend tell me about it

could be a bad slip ring.

+1 on the slip ring.

The slip ring has the electric stuff for the driver's airbag and the horn. E36 slip rings have been known to cause an airbag light or two. I'd say have the faults read and make sure the fault is for the slip ring before you go guessing though. Because removing a seat can set the SRS light if the ignition is turned on while the seatbelt is disconnected.

The paper clip trick is only for resetting the service interval indicator. (afaik)

I have a slip ring for sale.... pm me if you are interested, I think they are in the hundreds new.

there is a good chance it is the slip ring becasue you horn also doesnt work.

WHAT!! hundreds of dollars? That's a lot of money.

Is there anyway to tell if it's the slip ring maybe by disconnecting the steering wheel? If so what do I look for?

Thanks.

I suppose you could remove the slip ring and do a continuity check through the slip ring. But the first thing you need to do is to have the SRS fault codes cleared, see if they return, and find out what codes are returned. It is entirely possible that the SRS fault is something other than the driver's airbag and that the horn problem isn't a bad slip ring. You don't need to be replacing parts until the problems are properly diagnosed.

+1

+800! don't just throw parts at your car, fix things that need to be fixed. unless you have Chrometophobia, the Fear of money...because then you would probably want to get rid of it as fast as possable.