Code 1262 is the ICV, I think. Check the wiring, use a 9v battery on the terminals...some TB cleaner, rubbing alcohol, PB Blaster, might do the job. They tend to get gunked up with blow-by motor oil or the actuator coil shorts out.
The early e36 also had the infamous 'wet DME' problem. You have fuel & spark, so that's unlikely, but I'd make sure you did the drain mod on the firewall.