That's not right. ABS is always on- you can't turn that off. DSC and ASC are the exact same thing, the system is just called Automatic Stability Control instead of Dynamic Stability Control in older models. When you press the DSC button, a yellow exclamation light remains lit, which means that DSC has been deactivated, taking away the engine’s ability to control the amount of torque to the wheels when the car senses that there is wheel spin. When DSC is activated, it will decrease the torque to the wheels in order to stabilize the car. Another function of DSC is to detect whether one wheel is spinning and the other wheel isn't. The DSC system will then apply the brakes to the wheel that is spinning until the tire has achieved grip. When DSC is active, nothing will be lit, but when DSC is actively being used (i.e. when you're taking a very tight corner), the exclamation light will flicker, serving as an indicator that the DSC is actively stabilizing your car and warning you that your are driving on the edge of stabilization.
As I've mentioned before, when you've pressed the DSC button, the yellow exclamation light will remain lit (not flashing), indication that DSC has been deactivated and that DTC (Dynamic Traction Control) has been activated. DTC provides rear wheel vehicles with greater propulsion. In the 3 Series and Z4 Roadster, DTC also plays a role when on bends - it enhances the car’s propulsion and its sports-style qualities. The driver is in full control of their vehicle within a predetermined parameter: the regulatory functions are inactive (taken from
www.BMW.com). When you have pressed the DSC button again to reactive DSC, DTC will become deactivated.
When you hold down the DSC button for 3 seconds, the yellow exclamation light will turn on as well as an amber "BRAKE" light. The lit amber BRAKE light indicates that you have turned off the DTC and DBC (Dynamic Braking Control). Since the yellow exclamation light is lit as well, the DSC has also been deactivated. There is no indicating light telling you that the DTC or DBC are actively stabilizing your vehicle. The function of DBC (Dynamic Braking Control) is to sense when emergency braking is taking place (when you slam on the brakes) and it applies the maximum braking power possible to the wheels.
Turning off the DSC and activating DTC is useful when your BMV needs to power out of a ditch or is stuck in the snow. It is also useful in the track since it gives rear wheel drive cars greater propulsion. Holding down the DSC button for 3 seconds will deactivate DSC, DTC, and DBC.
NOTE: In the xi series, the brake mechanism is called ADB-X (Automatic Differential Braking). This system is essentially the same as DTC, but the braking system is now applied to all four wheels.
*All this info was taken from the 2004 3 series owner's manual and from
www.BMW.com