A '91 525 has a GM 4l30e in it; completely different transmission.
Not to be an *******, but I've BTDT, talked and written about it numerous times on the forum, and a lot of info can be had by doing a search. Please be sure to read this sticky: http://www.bimmer.info/forum/showthread.php?t=14093
And this one, too:
http://www.bimmer.info/forum/showthread.php?t=17366
Now, in summary:
- If the dash display indicates that the car is in reverse (ER for US models), the problem isn't electrical. Neutral Position Switch contacts are good, transmission control unit is getting the info it needs.
- The 4hp-22 has an entirely mechanical reverse; there are no solenoids, to my knowledge, that can prevent the car from going into reverse. Therefore, if the shift linkage is properly aligned and the car doesn't go into reverse, the trans has an internal problem.
- Is the trans fluid burnt or bad? Mine was, and I bought the car with no reverse after being told that it was a programming issue (ha ha). I drove the car about 600 miles with no reverse, but I have a feeling the damage was done long before I got my hands on the thing. It was determined that the trans had remachined its F clutch basket. Hard parts are available for these, but it made more sense to buy the ZF factory reman, which is what I did.
best, whit