Some update about vmWare version of DIS: Some say, that it is not possible to set up DIS on vmWare in Windows 7 64bit edition. That is not true. Today I tested it and the only problem is, that it does not work with the version of EDIABAS installed with the files from the first post. The newest version running with vmWare DIS and diaghead emulator is 6.4.7. The only thing you need to do is to copy the older version of EDIABAS (up to 6.4.7) eg. to the C:\EDIABAS\OLD\ directory and run the ifhsrv32.exe file from \BIN\ subfolder of the old version and not from the new version in the first post.
Everything running fine, tested this morning on my E39 535i, Dell Vostro V131, i5, 8 GB RAM, Win7 64bit.