the inspection light isn't an alert that anything is wrong. it is there to tell you that it is time for regular maintenance.
these are the things that are covered in the inspections: http://www.bimmerzone.com/inspection.htm
if you look at the lists, you can do virtually everything in an inspection I yourself. there are a couple of things which you'll need special tools for like battery load test, code reader & reset tool (although you can reset it easily without the tool), engineer's calipers for disc thickness, and of course a service manual (like bentley).
for inspection ii, of special note is the following:
| Originally posted by bimmerzone |
The Inspection 2 Service is the larger of the two Inspection Services and basically includes all of the items performed on the Inspection I Service along with some extras like differential oil change; fuel filter and air filter replacements; Replacement of spark plugs. Inspection 2 generally runs around $400+ to $500+.
read the inspection ii section from the link above to see the rest of the list. while the $695 you were quoted is fairly high, i have heard it quoted near $800 for some people.
certainly if you are not comfortable going under your car, then you should let them inspect it. fortunately inspection ii only occurs every 20,000 miles or so.
as for your airbag light, reading the code and resetting it can cost $75-$100 at a mechanic. you can buy a tool to reset it yourself from peake research like you mentioned. it costs $129, but it is worth it if you have friends who need resetting too (like i do... one guy even needed his reset twice, after correcting the fault). just know that the engine scan/reset tool is COMPLETELY DIFFERENT from the SRS airbag tool. usually the most common cause of airbag light is belt buckle or tensioner. but the only way to be sure is to read the code, a far better approach than throwing parts into it until it fixes itself (it won't, because SRS still has to be reset even after you correct the problem).
as for your windshield nozzles you might first want to stick a pin in the holes in case any hard water deposits clogged them. to test the pump you can put connect a multimeter to the pump connector and tell someone to turn it on and see if you get any voltage. when you eliminate the electrical connection, you can try to disconnect the hose from the pump and activate the pump, and see if any water squirts out at the connection. if it does, then you know the pump works and you know you have an obstruction somewhere in the hose between the pump connection and the nozzle.
i wouldn't know repair costs, but parts can be had by doing a google search.
hope this helps