I also failed the readiness code part of the smog test. The Porsche recommended procedure is insane unless you have access to a dyno.
I did the reset recommended at http://www.rennsportsystems.com/reference.html for BMW and it reset all of them

I needed to drive from the second part to where I could do the third part, so I kept it slow and below 3000rpm to get to the freeway.
Also with the last step, I did not sit with the clutch in, just in neutral.