ebotdm, the seat memory (and steering wheel) positions are resident on the Drivers Seat Controller (61.31-6 910 717, $55). Most commonly the lower plastic trim piece on the drivers seat breaks at the outside rear, putting a strain on the wiring harness and eventually works the connector free, possibly shorting it out along the way.
Before you take it to the dealer, remove the lower trim piece on the seat and check the connector that is going to the seat controller that is mounted to the back of that trim piece (connector has a sliding lock). You may only need to re-seat the connector.
If you find a loose connector due to the rear trim piece mount that is broken, you can purchase a new trim piece (must buy drivers and passenger as one) that will break again, or simply zip tie the connector to the control box.
E39 - 1998 540iA Sport (11/97 Production)
E30 - 1989 M3 (44k miles)
1979 Triumph TR7, still have my first car ;-)
E21 - 1980 320i (sold at 130k)
E23 - 1986 735i
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