BMW E46 airbag advice plse

There is only one airbag light that I am aware of, and it appears to be a bag coming out of the steering wheel.

The light can come on for any of several reasons, and requires a Scan Tool to reset the circuit. My guess is that the light is on because of a switch problem, most likely in the passenger seat but it could be any of many switches that control the activation of the airbags.

I'm in the USA, but I would imagine that any airbag light that is on would result is failing inspection.

You're welcome. Sorry I could not offer up any better response. the bottom line is that the airbag system is one that is not capable of repairing itself -- that is, some systems will give a warning light that goes away the next time you start the car, then may or may not reappear again later. The ABS system is one that can give a warning light, then not give the warning the next time you start the car. The Airbag system is one that requires specialized diagnostic equipment to diagnose, then reset the circuit.