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Inspection Light

I have a 1994 325ia that my wife drives.  It just hit 38,000 miles and the 
Inspection Light came on.  I know its due for an oil change so I called the 
local BMW dealer and they said it needed a Inspection Tune up and they want 
$495 to do it.  My question is how do I know it really needs anything other 
thatn an oil change.  The car seems to run fine.  I know nothing about cars 
so its safe to say I probably wouldn't know if there was something wrong any 
way.   Should I fork over $500 to the dealer just to get and oil change and 
the lights reset.  Thanks in advance.

Joe R.
1994 325ia
1998 328ia

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