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hey. I drive an E46 325ti (E90 is on order) and I had a similar problem with my navigation earlier this year. I started my car one day, and it didn't know where the hell i was, if i drove up a road, the navi thought i was going the other way. I freaked out a little, and unplugged the battery. Needless to say, it didn't fix the nav, and my windows and all stopped working (they worked about 30 mins later). After playing and playing, the navigation suddenly started working, I think it might have been me driving around and around 1 city block until it figured out where i was. Haven't had a problem since.
In South Africa, we have BMW oncall who will come out and look at your car no matter what is wrong (dead battery, flat tyre, weird noise). Maybe you guys have something like that there? You could call them?
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