I attempted this update last night on my E39 with a Mk4 system. I burned the image to an admitidly low-quality cd-r at 1x speed.

Initially, all went well, the progress bar went from left all the way to the right. Then it just hung there for a few minutes. Then it showed me an error screen saying "failed to update" or something like that.

Now the screen is completely blank. It's on, but there's nothing there. Radio still works. Guess it's time to go to the deal and confess my Sin.