BMW Repair: BMW transmission problem, bmw transmission, fog light


Question
I have a 1997 528i automatic that I have owned for 2 years. I bought the car with 108K miles and I now have 131K. I replace the oil on time had have replaced various sensors in the past year.
I was replacing my fog light bulb yesterday and after driving the car for less than a mile, I noticed that the panel was showing that the vehicle was in S2. When I came to a stop at my house and put the vehicle in park, the dash still showed S2. Since yesterday, I have just driven the car around the block to the store etc. I have noticed that when I start the car and put it in drive, sometimes it will show S2 but it will revert back to D when I start driving. On three occasions, the car has been changing from D to S2 while driving.

I havent checked the transmission fluid over the past year and a half. While my check engine light goes ON and OFF (for over year hence the sensor replacement) the transmission light "I" is not on. I am afraid of going to AAMCO as I cant afford to spend >3K right now.
Could this be an electrical (computer) problem, busted tranny or I just need to change the fluid and filter?

Thanks in advance for your help.

Answer
Cliff, does the gear postion on the gear selector (orange LED) change or does the gear display on the cluster change? Or both? It may just be the Gear selector indicating the wrong position. Does this happen often enough to duplicate for the BMW dealer? I would suspect the gear selector itself if the cable moving the selector lever on the side of the trans is correctly adjusted and moving properly. It sounds as though you can physically select the gears you want, but the display is incorrect.
If you can duplicate it often I would take it to the dealer and spend no more than 2-3hours diagnosis time. Have them run faults and give you a diagnostic printout. They will also upsell or bring to your attention other issues that may need addressing. Don't get over whelmed by your service writer if you go, but don't be rude either.
-Evan