You shouldn't need to unscrew anything.
The 1 inch level is the minimum set by BMW. If you lift the driver side headrest up, you won't be able to drop it down to flush again either.
Here is the procedure I followed, copied from another forum:
"On the head rest rotate the round cover clock wise and counter clock wise back and forth on the right post until you can lift the round cover ever so slightly, on the opposite side of the notches with a puddy knife or something thin like that. When you lift the cover you will see a mechanical spring loaded mechanism. press that to wards the post while pressing in on the release button on the other post and press down on the head rest
Before you press the head rest all the way down just in case you lifted the cover a little to high make sure you press it down. This is a temporary fix until somebody raises the head rest again Good luck
cheers"
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