So I've developed this same issue with my e91 '06, my quote from the stealership was GBP 972. They say that only replacing the steering column will fix the problem. I'm going to take in to an indy and see if they can update the cars software and solve the issue that way otherwise they'll be doing the column too. I'm disgusted that BMW wouldn't offer any goodwill toward the repair, especially as this is a fault with their component!
I was interested to read this walk through but without the pictures it makes it difficult. I found yakev724's photobucket page and the images show up in it, but unfortunately you can't see all of them full size. Here's the link, even as thumbnails they should help you get the gist.
http://s293.photobucket.com/user/yak...?sort=3&page=1