UPDATE: RELUCTOR RING REPLACEMENT
Hello again to respondents to this thread. I have finally recieved and installed a new reluctor ring from reluctorrings.com onto my rear axle and it appears to have worked. The installation took me about 2 1/2 hours including removing and installing the axle. The cost, including shipping, is about $85 USD depending on GBP conversion rate. Fitting instructions are included but you can also view them on the website:
Replacement ABS Reluctor Rings for many makes of car
reluctorrings.com
Here's some photos and tips for the procedure as I did it:
Important! Be sure to measure the diameter of your reluctor ring before you order one from reluctorings.com. I originally went by the fitment for my 330xi listed on the website and it turned out to be incorrect and I had to send it back and order the correct one. There are two options: 93.9 mm inside diameter and 78.9 ID. Mine was 78.9 but yours could be the other.
1. Remove axle
And remove ABS sensor from hub carrier.
2. Remove old reluctor ring. Mine came loose with brief jabs at the base of it with a dull prybar.
3. Using a stiff wire brush and a strip of sandpaper, clean the area where the ring sits:
4. I used a section of 3 inch PVC pipe to hammer the ring into place but if you have the 93.9mm ring you will need something with a larger diameter. Or you can use a solid block of some sort and evenly hammer it into place. The instructions recommend using threadlocker on it but I did not, it was a really snug fit. You may want to opt for it though. If it seems like it really wont fit, sand off a little material if you need but keep in mind that you want it to be nice and snug so it wont come loose.
Evenly hammer the ring into place until the top of the ring is flush with the outside face of the joint. I ran my finger over it as a reference:
5. Re-install axle and ABS sensor, clear the codes and go for a test drive.