Yep I lost my album covers too. They updated mine half a year ago without asking for my permission. I finally figured out why the album covers disappeared. The Transportation Dept forced them to do so because they treat the album covers as graphics (like TV) which is illegal when the vehicle is moving. Even if you instructed them not to update, they will as they are bound by the Transport Dept to do so.
It's just incredibly stupid.
I'm thinking of downloading the latest software from BMW.com and doing the upgrade myself to see if I can get back my album covers and have my phonebook in alphabetical order again.
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