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Just putting the front back in last night and the sensor is touching the abs disc. (this is to be expected as, apart from some of Bling Bling Bob's finest bolts, I 've just put on the 'missing' spacers behind the discs).

Any tips on re-setting the abs sensor? Do I have to take it off completely?

thanks Harry.

You need to put some shims under the sensor to bring it away from the sensor ring. Here are the official words from the service manual:

Adjusting front ABS sensor gap
Marking sensor wheel
• Take load off front wheel/lift clear of ground.
• Secure the dial gauge holder,
BMW No. 00 2 500, with dial gauge,
BMW No. 00 2 510, and measuring shoe,
BMWNo. 34 2 510, to slider.
• Zero the dial gauge.
• Measure axial runout over the entire circumference.
• Using a touch-up marker, indelibly mark the
point where the sensor is farthest away from the
sensor ring (arrow).
Checking and adjusting sensor gap
• Check/adjust at the marked point.
• If necessary, remove/install sensor with
Torx T 25 and adjust sensor gap with shims.
Sensor gap:........ 0.45...0.55 mm (0.018...0.022 in)
e Caution:
After adjusting, rotate the wheel and check that the
sensor is clear at all times.

Isnt there a feeler gauge in the tool kit for setting the correct gap

There is Bob. I was just wondering about adjustment.
It seems as simple as just a couple more washers ....