Hi Folks,
I was a little apprehensive about burning a copy of the CD -- after all, CD Burners are decent, but you can run into problems with Burner/CD-ROM Compatibility among various drives.
At any rate, a very nice gentleman named Chad has posted the newest 2002 software from BMW. NO, I don't know whether that is legal or not (Probably not!), but I downloaded it and installed it anyway without a hitch!
http://www.bimmer.org/x5/messages/messages/72041.html
This software can be installed on the MK III Navigation System ONLY. That means 2001+ 5 series, 2001+ X5 (I believe wide screen only), and I would assume 2001+ 7 series, 3 series 2001+.
Now I am curious if the pre-2000 5 series (and other cars) just need a newer CD ROM drive to upgrade to the MK III system. This would be an interesting research topic for someone who has the time.
Folks, BE VERY CAREFUL. If the upgrade does not work right, you are stuck with a dealer visit. Hopefully you have a very understanding service advisor

I was very nervous doing the upgrade, but I know the master technician at a BMW dealership very well, so I knew I wouldn't have any problems getting it fixed if something went wrong.
Chad has listed instructions and all files necessary, and the download site is very fast too! If you are a computer guru, go ahead and give this a shot.
Comments:
I had a very late model 2001 X5 (built 09/01 -- wanted to get one because I was afraid of price increases) -- so I used the older software for a month just before upgrading to this one.
I really like the new interface -- much nicer on the eyes. The screen is not as bright as it used to be during the night -- it used to light up the whole inside of the cabin

New fonts are VERY nice -- much better than the older DOS-like fonts used on the system. Split screen is, of course, very nice.
My only gripe is that, as others have mentioned, the OBC cannot currently be displayed with the Radio/Tape/CD selection. The CD/Tape/Radio display looks very lonely without the OBC selection -- but I am sure BMW will work on this -- this is only "version 1.00" of this new software, so many fixes/features will be implemented as time goes by.
I really like what I have. As I mentioned, if you are a computer guru and know what you are doing with burning CD's -- go for it! The software is legit and works great!
Feel free to ask any questions, I'll do my best to answer them.
-Chris