'94 325i 3500rpm rev limiter problems

[Revan125]

Initially I assumed it was a speed sensor issue. When it was plugged in the rear diff my speedo registered I was going 160+ as soon as I started rolling in gear.. but I didn't have a rev limiter issue until I hit 5th gear and it limited out at 3k rpm.. and the system learned to limit at every gear after that 5th gear issue. So I unplugged the speed sensor and the same issue occured.. I could shift at any rpm until I hit 5th and it seemed to go into some sort of limp mode after that in every gear.. limiting at 3500rpm. I went ahead and replaced the speed sensor completely and the issue was still there. Another quick fix for it was to unplug my battery for 15 seconds and the limit issue went away until 5th gear again of course. So I guess I'm looking for two solutions.. the speedometer problem reading 160 and the shift point limit at 3500. If anybody has any suggestions or insight on any of these issues please let me know. I'm working out the kinks of the car still.. I've only had it for 10 months

[Eric93se]

Ohm test your cam and crank sensors, the values are on the forum. Then do a 'stomp test' to see if there are any stored codes.

[spyderg0d]

Automatic or manual?
It is certainly an electrical issue somewhere.

[cranstonjc]

Following, I too have what seems like a rev limiter coming on at 3,500 rpm... 98 M3 Manual trans, my speed sensor is working fine as far as I can tell. Happens in any gear or neutral. Smooth as silk until it hits 3.5k. I bought the car last week with this issue pre-existing.