Below is a link to a picture of the front end as it now sits, scroll down to second picture. I was advised by my dealer that since I have self leveling head lights the two inch drop in the front may be too much for the mechanism to overcome, thus the planned 1.2 inch drop. I dropped a 328i recently and the headlights were way too low in low beam.
http://www.xbimmers.com/forums/showthread.php?t=317176