it was flashing initially, and then it went solid. while this happened i bought a scan tool to know exactly what it was -- misfires in cylinders. likely culprits was coil packs and spark plugs, so i ordered them.
not even before my order can show up on my door step my car started shaking violently, and the MFI had a warning message along the lines of "SERVICE ENGINE NOW!" (i actually think it had the exclamation mark).
mechanic swapped packs and plugs. it fixed the violent shaking, but the CEL came back on a couple days later. that's when i got the injectors replaced. rock solid ever since *knock on wood*.
long story short, "german reliability" = don't you even think about driving your car when the CEL is on.