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'95 325i: What kind of service do I need to get done if ...



Hi all,
I'm new to this newsgroup and was wondering if you could help me with
some questions that I have about my '95 325i.  I bought this car in April '99
with 45K on it, under the BMW pre-owned certification program.  
The car currently has 52K miles on it and the service indicator in the
car is displaying an "Oil-service" message.  All the green lights in the
indicator are off and only the yellow and red ones are on along with the
"Oil-service" message.  When I called a local dealer in Fremont, CA, I was
told that I would need an Inspection 1 which will cost approx $500.  
I am bit confused as to whether the car is really due for this service/inspec.
since the "Inspection" light in the car is not really on.  What should I do?
As far as I know (from the dealer service records) this car went through
a BMW used car inspection (including oil/filter change, coolant & brake flush 
etc.) in April '99, and a Inspection #2 service by the previous owner in 
Oct' 98 at 42K miles.  Given all of this info, what service do I need to get 
done now.
For future reference, how does one know when to take the car for 
an oil change or an inspection of some sort?  Should one just go with what the 
indicator in the car says?

Also, the lights illuminating the fan and temperature knobs on the dash are not
working.  Is this something that I should be able to fix on my own, or do you 
suggest that I have the dealer look at it?  How much would it cost?

Thanks very much for your help!

Manish

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