Whenever I am on a winding road or looking for some fun I go 1 click off (half-way mode). The car is much sharper and quicker in and out of corners without the very intrusive (and early) electronics intervening!

 

So, is it correct to say that pressing the DSC button once, briefly, turns DTC on (as indicated by DTC lighting up in the dashboard)?
And that when DTC is on (as above) this allows the wheels to spin but still provides some stability control (i.e. helps prevent understeer/lateral slippage)?
If that is the case then it's no wonder everyone is confused as switching Dynamic Traction Control on (as above) actually disables what everyone knows as "traction control" !

With everything switched on BMW should have called it DTSC (Dynamic Traction & Stability Control), one press then to put it into DSC (i.e. lose the Traction Control) and press and hold to turn everything off!

 

Spot on Smarty. And yes, I agree, it is the terminology that is causing the confusing. They should just called it "Full", "Reduced" and "Off" or something much more obvious.

 

Russ and Scooter are correct about the faster cornering with DTC mode

With DTC "on" the system controls the differential as a "virtual" LSD.
When a wheel is spinning, the system instantly applies a sufficient amount of braking to that wheel, transfering that way the power to the other wheel (with the better traction).

With DTC "on", DSC is also "on", but it will "kick in" much later (perhaps, when it's too late ), so driver must be carefull and ready to react, especially when fast-cornering on slippery/wet roads!

It is really a nice 'n sporty mode!!