I went to the dealer yesterday and received 2 software updates. First was for rough starts (very smooth now) and the second was to fix the Bluetooth problem that kept dropping my connection. It now works every single time. It is great.
Cingular has the 4.02 download at the following address:
Again, this is for Cingular; do not know if there is any difference for another carrier. It is my understanding 4.02 is available for all carriers and 4.1 that will fix the Address Book issue will be released within the next two weeks. In the interim, I am thrilled by 2006 325xi works. Please note you have to have BMW Assist for it to work, I believe.