The Inspection II can be called a major service, since its the biggest, but nothing 'serious' gets done.
There is no cam belt, there is a chain, so that does not get replaced. Hence nothing 'serious' gets done.
On the E46 it would be around 80-90,000km dependant on the OBC, driving style etc.
I can speak about the E36 M3, the E46 M3 should not differ.
They change:
- Engine oil
- Engine oil filter
- Gearbox oil
- Differential oil
- Spark plugs
- Air filter
- Cabin (pollen) filter
Optionally they change
- Fuel filter
- Belts and pulleys if cracks are noted
- Brakes (disks and pads) - dependant on remaining thickness.
One other thing that irritates me is "Valve clearance adjustment' - which they supposed to check and perform, but i think most dealerships don't care, or don't have the expertise.
Hope it helps