I would check the part # of the radio and then look up in realoem the part # of the radio they are putting in the 9.2005 models. At least that would verify if you have the same radio. BMW do some very odd things with their parts !!

Have you being into the Radio Service menu? Can you specify a radio location. In the USA, the BM53 allows this, but not sure if the BM54 (Euro radio) allows it. Perhaps resetting this might help?

THe BMW CD Changer definitity reads ID3 V2.x tags fine !