there is a hole in the bell housing (under the starter), and a hole in the flywheel. the idea is to line both holes up and insert BMW's locking tool.
on the back side of the cams there is a sqaure piece molded to the cam. BMW also makes another tool you use which lines up both cams to the factory setting. if you want to adjust it a 22mm wrench fits fine onto the sqaure moldings and you just "eyball" it (im sure there are better ways). also, make sure you do not get slack in the timing chain on the tension side.
ps. the factory setting is the best setting. i have both retarded intake timing and advanced it. both times trying 2, 3 and 5 degrees. my advise is to leave it stock, sure youll have killer top end, but low end sucks.....and visa versa. also, adjusting the exaust cam wont do a damn thing. just my two cents.