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I had this issue on my 2001 330ci as well, if you would touch the gas pedal it would start blinking the traction control light.

The only way to drive the car was to turn dsc off completely(hold button for 10 seconds, not just single press it).

What fixed it for me was replacing the wheel speed sensors, this is a known weak point on these cars. Since replacing I have not had any issues with it again.

So if you have this issue, disable DCS, make a short test drive. If the problem is gone, replace the sensors. It is really easy, wheel off, 1 screw to undo, and the sensor should come out, this might require some force but thats ok if you have the new ones already.
 
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