Try this
http://www.bavauto.com/
The sensors are a wire in a plastic pellet that attaches to brake pads. About $15 to replace. The sense electronics measures if the insulation on the wire is gone and the wire is touching the rotor or if the wire is completely cut through. If you want to defeat it, buy a new one, plug it in and just mount it to the strut or other convienent place instead of on the pad.
The dealer's OEM pads are the quietest but others are less dusty and or higher performing. The guys at Bavarian Auto know their stuff. They are BMW enthuseasts(SP).
You should be able to get by with just pads at that milage. (About $50 per axle plus sensors if I waited too long.) I would just change the pads on my wife's 2003 530i when it gets there.
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'96 965, 16' wheels, Michelin Pilot Sports, rear 18mm bar + Koni, 201 HP cams, 130K. Put 200K on '85 745 TD.
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