1) I think the "switch in the glove box" that you're looking for is actually the control box that is located BEHIND the glove box (gotta take the golve box out to get to it). There are switches on this control box that allows various options to be turned on/off such as glass breaking sensitivity and horn/siren use for the "beeps".
2) I think Cruzin 323is may have hit the nail on the head with your original problem. One of the door sensors thinks that the door's open, when it's not. You probably temporarily re-aligned the sensor (banged the door closed a couple of times!). I'd wager that your problem will probably come back.
<span style='color:green'>1994 325i </span>- - - 75,000 mi.
No mods - - - very happy as is!
<span style='color:green'>1995 525i </span>- - - 154,000 mi.
No squeaks or rattles... unreal!