OP, I just wanted to add that I noticed you also have an e46. In my e46 with rain sensing wipers you did have to move the stalk to the first position/click (there was no LED lit button) to make the rain sensing wipers activate. The e70 is different so if you are in fact hitting the button then moving the stalk perhaps that's where the confusion comes in. e46 and e70 rain-sensing activation is different, FWIW.