Have to agree with Primetime and Werewolf on dropping the $750. Never underestimate the value of "peace of mind". Yes, its not fair, but as I've gotten older (and hopefully wiser), I've come to realize that some things just aren't worth the aggravation and the time you spend fighting about it.

Try to call a couple of additional BMW dealerships, and if you get the same answer, just drop the coin and get your ride back into shape and put your mind at ease.