When I was originally told that a "software update" would solve the problem, I was also told that it wasn't user updateable (i.e. not through the normal software update option in the media system).
However, the software update didn't fix the problem. The only thing that seems to have fixed it is to have the entire radio replaced. My advice to all who are experiencing this problem is to push BMW to stop messing around with software updates and get the radio hardware replaced - BMW seem to be reluctant to do this due to the cost (one BMW guy told me that this was an extremely expensive route - but it certainly seems to have fixed the problem for me!).
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