I noticed the exact same jarring "drop" from the tranny when I test drove an 07 X3 last week. I also noticed a hesitation in the engine/transmission when pulling away from a stop sign. The salesman said it felt like it needed to be "programmed". We'll see; we purchased our X3 which delivers next week. Fingers crossed that they'll continue to tweak the tranny software. My last BMW, a 2001 330 ci was one of the early E46 off the line. The Auto press and owners alike initially complained that the steering had been "over-boosted" and the car lacked some of the typical BMW "road feel". After several months, BMWNA offered to change out the steering rack to the original, less power-assisted feel. This was only available to owners who requested it. I was impressed and relieved that BMW offered to cover this "performance" repair under warranty. I've read several posts that indicate anomalies to the 07 X3 transmission, and assume that with enough complaints & feedback from customers, they're work out this glitch in a similar manner.