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The green, red, orange lights are for the service and oil intervals. See owners manual.
also see this thread
As for the idle problem, you might need to clean the idle control valve. Use the search on top and type in idle control valve etc. and you will find a lot of information, pics and other things.
Also have a look at my website. Although it is mainly for E32, it also fits for the E34, as they have many things in common and parts are interchangeable.