This applies only to US/Canada North America DVD Trunk-Loading Navigation Unit.
Disclaimer: Use this instruction at YOUR OWN RISK. I will not accept responsibility or liability for any damages to your car.
Here are a few improvements of the latest V32 firmware:
Reading dual layer DVDs
Loading voice files (male or female)
Fix: Navigation system is inoperative after arrival at destination
Fix: Incorrect address book
Step 1: Use the secret iDrive menu to determine what's your NAV version. Here's how:
Press the iDrive knob down for at least 10 seconds
Turn the knob 3 clicks clockwise
Turn the knob 3 clicks counterclockwise
Turn the knob 1 click clockwise
Turn the knob 1 click counterclockwise
Turn the knob 1 click clockwise
Press the knob down firmly and release
Select "MOST Devices".
Scroll down and select "Navigation".
Scroll down a few pages until "Software Version" is displayed.
If version is 8.4.4 hex, then your system is NAVI02 which already had the latest firmware. Nothing needs to be done. Skip the rest.
If version is 9.x.x hex, but not 9.8.2 hex, then your system is NAVI03. Proceed to the next step.
E65, E66 NAVI01 (CD-drive): later version is 7.3.2 (not applicable here)
E65, E66 NAVI02 (DVD-drive): latest version is 8.4.4 hex
E65, E66 NAVI03 (DVD-drive): latest version is 9.8.2 hex
Step 2: Download the latest firmware V32
Note that V32 is the latest released firmware from BMW.
BMW engineers stopped producing upgrade for E65/E66 after 03/2008.
There are many other versions V32.1 or V32.2 floating around on the net.
They are customized firmware, not the genuine BMW released firmware.
Alternatively, you can buy this firmware CD from the dealer.
This is the product number: P/N 01 59 0 141 891 index "y"
Step 3: Burn firmware (cue or bin) to a CD (or DVD)
You will need a single blank CD-R 700MB, not CD-RW.
Specified write speed 48x or 52x is not really important.
Verbatim and Memorex are reliable brands.
Other brands such as Maxell, Imation, TDK, or Sony are just fine.
For Windows users, you can use Nero Burning or freeware such are ImgBurn (http://www.imgburn.com/).
For Mac users, you can user Burn (http://burn-osx.sourceforge.net/Pages/English/home.html).
Burn at the lowest speed 1x to 4x if possible.
Always verify the image to make sure the burn was good.
Step 4: Install the firmware
This is the official instructions from BMW SI B65 21 02:
Insert the key fob into Ready state. Do not start the car.
Enter the navigation menu.
Remove the road map DVD.
Insert the navigation operating software CD V32 into the navigation unit.
Select "Yes" with the controller to install the software.
The software will then load in two steps, taking approximately 10-15 minutes.
Do not touch the iDrive while the software is loading.
When the installation is finished, the CD will be ejected. The message "Installation Successful, Remove Software loading CD and press OK" will appear. At this point, select "OK" with the controller.
The navigation system will then "Reinitialize".
When prompted, insert the road map DVD.
Make sure the battery is sufficiently charged. DO NOT SWITCH OFF THE IGNITION DURING UPDATE PROGRESS, otherwise you'll kill your navi.