I belive that eaven with old software for nav (4:3) the pitcure wil show on the 16:9 screen but in 4:3 format
About the tv module, do you remember having TV option in menu before upgrade ?
Picture that you posted showes where module is, but it is actualy on the inside cant se it in picture but under the arrow twords the battery, and the cable connections are to the right
Hope this helps

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X5 4,4i-06 Current
330Ci Cab-03 2007-2008
MB E55 AMG-03 2006-2007
Z3 2,8 Roadster-98 2006-2007
X3 2,0d-05 2005-2006
320d-99 1999-2005