Update: I sent a long complaint email to BMWUSA Customer service. Told them I realize car is out of warranty, but they should stand behind a failed turbo at 40K miles.....at least, pay for the parts. BMW did buy me a new sunroof cassette ($4,600 parts & labor) when my 1st gen X3 kept getting flooded every time it rained. Car was out of warranty too, but it's a common problem. Anyway, didn't get anywhere with them on the turbo. $4,600 later, and I've put 1,200 (so far) trouble free miles on it since the turbo replacement.