brahtw8 - has it right ... I was referring to the e39 540
The orig post was asking about the 540i ... which in retrospect could also be the e34 540 / M540 or the 540 sport using the 4.0 block... not sure if they had the vanos or not
Taking that into consideration, the vanos was introduced in 99 for this particular line (4.4 liter v8)
so... YES and NO the 540 uses the vanos system