Surely there is a simple way to adjust the E46 headlamps to European standard beam pattern. It is not mentioned in the owner's manual, and a dealer says they can do it but will charge for a few hours work. It can't be rocket science, but I can't figure it out on my own. Anyone have the instructions?

I heard one guy took the headlights out and took them apart, he said you can turn projector left or right in its housing and changes the pattern. Anyways, here is what I did to my E36 headlights when having the same problem as you have:
http://forums.bimmerforums.com/forum/showthread.php?t=850380

Thanks a million. Will have a look. On suggestion is that here is a lever or toggle inside that needs to be switched one way or the other.