Couple of peeps have already done this so thought I'd do a write up of the steps as I got round to this today. Thanks to Jason Kruys and Stubeedoo for their tips
If you don't want to remove the pipework and would rather just install a bypass - then check this out: http://www.e46zone.com/forum/topic/53120-egr-and-breather-valve-upgrade/
Note, this DIY was done on a 330D with the earlier type of engine. If you own a later engine than my 2002 184hp engine, you will need to code out a warnin