Edwin, It defiantly sounds like a corrupted v29 OS CD, you need to disconnect the power to the unit and then try again, this should fix the cd poping out without reading (sounds like the nav drive has hung in a unstable state).

Here is what I do when I upgrade.

Burn at 1x speed, on good quaility cd.

When its finished writing your new firmware cd,
Goto the car open the drivers door,
Goto the dvd nav computer wait for the red led on the drive to go out,
Then press eject on drive,
Eject the map disc,
Switch ign to pos 1, leave door open.
Insert firmware disc into drive, follow instruction on nav screen.
Wait (approx 6 mins) till sat nav asks to eject cd and reboot.
Eject cd,
Confirm reboot.

Do not swich off ignition or close the door when doing the upgrade.

hope this helps.

P.S The old blue screen is the TV modules backup display driver, this means that the nav comuter has hung.

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Sept 03, M3, Silver Grey. Retro-fits: Modded Mk4 DVD Drive, OEM Bluetooth, VR Control, Rainbow Speaker Upgrade, Sony SOT Amp, HK Sub, CCFL, Intravee II, NightMode.