Hey apw, The build on my X5 is also 12/04 and it came with Bluetooth. It was the non-voice version...

Now to your question. No, the new system doesn't have SMS (or it's still disabled). The one thing I discovered yesterday is that it now shows you when it's searching for your phone. So, if you happen to get into your car and press the phone button too quickly, the system will flash (SEARCHING...) to let you know it is still pairing and its not ready to call. As soon as it pairs, it moves to the DOWNLOADING PHONEBOOK! screen we all know.

This also works when you are pairing a phone for the first time. It's pretty cool that they finally took the mistery out of the pairing process. Before you had to guess if the car was searching for a phone.

Jose