When I turn on my 2004 E60, the xenons move up and then go down, but do i have the adaptive headlight?? It doesnt say on the headlights though, but on the switch i have the Automatic Headlights Position, could that be a hint that i have the adaptive headlights?

 

It's easy to test, park with the front facing a wall, turn your wheels all the way left or right, if you see the beam following the turn then you have adaptive lights - if not? You don't.

 

pjinca's description is correct. I would just add that the headlight switch must be in the automatic position when doing your test. I'm also not sure if they were available in 2004.
What you described when you turn the lights on is normal for xenons. They all do the bob-up and down.

 

Ther`s a sign on lense Dynamic Xenon.

 

They were available on MY2004, had them on my 2004 which was built in Dec 2003...

 

+1 Pjinca Plus I have an 04 530i w/adaptive headlights.

 

Do be aware that while Pjinca's method is correct, the adaptive headlights will only turn to the right (in left-hand drive cars) while the car is standing still...

 

mind say dynamic xeone

 

Wait wait wait - Do they only move left/right (when driving, let's say) if the switch is in auto (far left) position?

 

Correct, only in Auto...