There was a thread a while back regarding Carsoft not working on the Z4. Well, I got it to work. However it required a little looking around on various forums, so here's a summary for all of you folks to get a free ride...
For these of you that wanna know what can be done with Carsoft, here's a review done by DJ Genius.
Carsoft is made of a Hardware part and a Software part. The hardware can be bought on eBay from various sellers. This is the seller I bought it from. And here's what I got
I believe all units on sale on eBay are the same inside the box, probably just a different shape. There are some that plug directly into the OBD plug (while mine has a cable). I like this way better only because I have more wire and I can keep the laptop where I want.
The reason why they are on eBay is because some time ago the diagrams of the box & cable ended up on the Internet and Chinese manufacturer ended up flooding the market with knockoffs unit... Which work just as fine as the original... (if you're handy with electronics, I can send you the diagrams so you can build your own box & cable)
The unit comes with a serial port, and this is the first source of issues. Not many laptop today come with a serial port. If your does, then it will work fine. If it doesn't, th only USB-to-Serial adapter that I know works is the one on sale at RadioShack
If you can't find it on the other side of the pond, let me know and I sen you one at cost. Otherwise, on another forum I found that USB-to-Serial adapters with Prolific chip work. An alternative is a PCMCIA Serial adapter which is more likely to work, I have no experience with it, but several sellers recommend it over the USB-to-Serial if you're computer doesn't have a built in Serial
Along with the cables, you also get a copy of the software: trash it. Most likely it doesn't work, and if does, it likely gonna have a crappy crack that makes it crash when you attempt to run a diagnosis. Software is the second source of issues
David Mc on Bimmerforum wrote a very well done thread on how to install a working copy of Carsoft. He's also sharing one, which require a password. I'm not sure I can post it here, so, if you want a working copy of Carsoft with software, update, crack and instruction, send me an email and I send it to you. Otherwise you can ask David Mc about it and he'll give you the password.
There's only a couple of things: Carsoft 6.5 is said to be working for ENGINES UP TO 10-2004. Actually it should be read SOFTWARE UP TO 10-2004. If your DME got updated recently (as I guess happened to mine) you won't be able to read it... For me it's no big deal since I have the Peake tool so I can read the codes (if I get any). All other modules can be read (you can see how the DME doesn't respond; all other not responding modules are not installed in the Z4).
It might take a while to get familiar with the BMW modules names so here's a list of all their acronyms.
The car/key memory programming doesn't work on Carosft. Also, I'm not sure if it works in the newer Z4 (with the N54/N46): if someone lets me try next time I can find out.
Also, now you know I have it, so if anyone around San Diego/Los Angeles has some issued that wants to diagnose, I can try to help. I know IMZ4N had issues with his Airbag light. I actually had the Airbag light turning on on the Z3 when my dad took the wrong measures of the seat and basically felt on it. On the Z3 the contacts under the seat (either for the passenger occupancy sensor or the pyrotechnic pretentioner) are known to get oxidized and with time the trigger the Airbag light. I used some contact cleaner on mine and it works perfectly... So once you get back from HC you can stop by and see if it works on yours too (or maybe you got it fixed over there).
For these of you that wanna know what can be done with Carsoft, here's a review done by DJ Genius.
Carsoft is made of a Hardware part and a Software part. The hardware can be bought on eBay from various sellers. This is the seller I bought it from. And here's what I got

I believe all units on sale on eBay are the same inside the box, probably just a different shape. There are some that plug directly into the OBD plug (while mine has a cable). I like this way better only because I have more wire and I can keep the laptop where I want.
The reason why they are on eBay is because some time ago the diagrams of the box & cable ended up on the Internet and Chinese manufacturer ended up flooding the market with knockoffs unit... Which work just as fine as the original... (if you're handy with electronics, I can send you the diagrams so you can build your own box & cable)
The unit comes with a serial port, and this is the first source of issues. Not many laptop today come with a serial port. If your does, then it will work fine. If it doesn't, th only USB-to-Serial adapter that I know works is the one on sale at RadioShack

If you can't find it on the other side of the pond, let me know and I sen you one at cost. Otherwise, on another forum I found that USB-to-Serial adapters with Prolific chip work. An alternative is a PCMCIA Serial adapter which is more likely to work, I have no experience with it, but several sellers recommend it over the USB-to-Serial if you're computer doesn't have a built in Serial
Along with the cables, you also get a copy of the software: trash it. Most likely it doesn't work, and if does, it likely gonna have a crappy crack that makes it crash when you attempt to run a diagnosis. Software is the second source of issues
David Mc on Bimmerforum wrote a very well done thread on how to install a working copy of Carsoft. He's also sharing one, which require a password. I'm not sure I can post it here, so, if you want a working copy of Carsoft with software, update, crack and instruction, send me an email and I send it to you. Otherwise you can ask David Mc about it and he'll give you the password.
There's only a couple of things: Carsoft 6.5 is said to be working for ENGINES UP TO 10-2004. Actually it should be read SOFTWARE UP TO 10-2004. If your DME got updated recently (as I guess happened to mine) you won't be able to read it... For me it's no big deal since I have the Peake tool so I can read the codes (if I get any). All other modules can be read (you can see how the DME doesn't respond; all other not responding modules are not installed in the Z4).

It might take a while to get familiar with the BMW modules names so here's a list of all their acronyms.
The car/key memory programming doesn't work on Carosft. Also, I'm not sure if it works in the newer Z4 (with the N54/N46): if someone lets me try next time I can find out.
Also, now you know I have it, so if anyone around San Diego/Los Angeles has some issued that wants to diagnose, I can try to help. I know IMZ4N had issues with his Airbag light. I actually had the Airbag light turning on on the Z3 when my dad took the wrong measures of the seat and basically felt on it. On the Z3 the contacts under the seat (either for the passenger occupancy sensor or the pyrotechnic pretentioner) are known to get oxidized and with time the trigger the Airbag light. I used some contact cleaner on mine and it works perfectly... So once you get back from HC you can stop by and see if it works on yours too (or maybe you got it fixed over there).