I am an E30 guy too, as that what got me into BMW's. 96 was the first year BMW introduced the security features of the EWS2 that is built into the DME. You have to have the proper encoded chip on the key and EWS2 unit all aligned with the DME in order for the car to start and run. You can't just throw in a different computer and expect the car to work. You can have the computer realigned at the dealer but it is a PITA and costs money. You know what a dealer can charge just to look at your car! It is easier and cheaper to just buy everything you need to make the car run which is almost impossible at a JY because they seldom have the key and BMW won't make you a new key unless you show title and registration. I have kept all this stuff together for just this very reason.
This is my current DME. It's a BOSCH, and my car is 01/96 production date. Not sure if it's a BOSCH 413 DME, I'm reading everything I can right now about EWS. Is your DME a BOSCH or Seimens?
Edit: forgot to add the pic of my DME. Sounds like you have the one that will work with my car!
The DME I have is also a bosch 0 261 203 667 with a silver label. It will only fit a 96 because in 97 BMW went to a true OBD2 motor with more pollution crap on it. They are not interchangeable unless you also use the harness that goes with the DME and the 96 harness does not have the air pump and electric fuel pressure regulator that the 97+ cars have. You also can not use the 95 obd1 DME on a 96 m44 obd2 motor. The red label 413 are only for 95 and earlier m42 motors.
WTB U.S. 96 318ti 5-speed DME 
Linear Mode
