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What's wrong when "Antilock" light is on? ('87 325is)

Hello Bimmerphiles,
	After what seems like years of searching I think I've finally 
found THE car!  An '87 325is with 152K on it and in excellent shape. 
Original champaigne paint, All body numbers match, MINT tan leather 
interior, 2nd owner, and timing belt changed at 100K in 1993.  I am going 
to make an offer tonight!  
	The only thing wrong with the car is that the "antilock" idiot 
light is on constantly (with car on).  The owner says that it just came 
on in the past couple days.  The brakes felt fine and stopped great 
without locking up.  I did notice a faint burning smell after I braked 
REALLY hard, but I think that was more frying asbestos than anything 
else. :^)
	What does that light usually indicate?  That the antilock system 
is not functional?  Is this expensive to fix?  Dangerous?  Was the 
antilock system an option in '87 325is' or standard fare?  PLEASE let me 
know ASAP so I can make an informed offer!  Thank you much and maybe by 
tomorrow night I can call myself a BMW owner!   Thanks a bunch for any 
info on this...

	Jay Karolyi

E-mail: karolyi@domain.elided