So just to follow up with this thread. After the trip to the dealer, where it was discovered the CBS Oil Service system is designed to stop working after 300,000 kilometers (186,000 miles), BMW has not yet fixed the issue.
I waited 4 months to post this because I wanted to give BMW a chance to fix it and post the whole issue including BMWs resolution of it (just to be fair). Also, I erased my post that originally told about the situation with the software (my post can be found however in post #11) because I didn't want BMW to read it before they had a chance to do something about it. However, since BMW has decided it's not important to them to solve the issue, I've decided to post about it.
I posted this yesterday in a separate new thread found here.
http://www.e90post.com/forums/showthread.php?t=926864
It may seem like I have an axe to grind because I've posted about it in three separate places, but I want to make sure if someone else has the same problem, they can find it by searching.