My X3 was built in Sep 2005 but I swapped the standard Business Radio for a more recent Nav CID control radio that came via ebay from a crashed US Z4. Build date for new radio is 01/2006. I used the radio service menu to swap over from US to Europe and to turn on RDS etc. All seems fine with this - no problems with FM, TP, RDS, AM etc - all ok. I suspect this is another software coding issue - perhaps the radio wasn't updated when my Mk4 was coded after the nav retrofit. I'll check with dealer.

Thanks for your help.