I'd have to concur with brian, the nav computer sounds like it's dead.
I'd also be tempted to upgrade it to a MK4, you can pick them up an eBay cheap enough (don't pay more then £300).
However go back to the dealer and say that you want them to fix it, it should form part of your cantract with them, under the 1984 sale of goods act, as its not fit for purpose.
You bought a car and the car has nav, now you have discovered it does not work when it should, they should help you get it sorted out (even under goodwill).
have a look here to see what you have http://www.xoutpost.com/articles/all-...ystem-faq.html
HTH
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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.
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