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Same problem with my 2000 328i. No mechanic knows wtf it is but from reading online its def the vanos seals. They don't sell the seals separate so you just have to replace the whole vanos which is probs 500 + 1000 for installation
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I hae a 1999 e46 328i (m52 engine i think) with the same problem when cold it will idle at 1000rpm dropping gradually and sometimes it will drop to like 300rpm and catch itself, after two or three of these stall approaches it will do it again and cut out.
I have been told its the vanos o ring seals seals or a vaccume leak. check out youtube and beisan systems website.
I am led to believe its not a bad problem ie wont kill the engine just a pain for cost of repair and fuel consumption and bad performance.
Either way let us no your outcome as i will follow, just putting up with it for now.
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