The instruction book is poorly written in this regard and actually contradicts itself. My intrepertation is that if the dash light (squiggly tires light as opposed to the BAS/ESP light) is on, the Electronic Stability Program (ESP) is off, which means (I guess) that you may potentially damage the transmission if you over spin a wheel. However ESP braking plays a part in preventing a loss of control, and it seems that if the ESP control is off than you don't have traction control to help in a spin or loss of control, a very desireable feature.