Yes, your instructions are right.

The very fist time it is inserted and switched on, allow the nav to collect the almanac data. It will have lost almanac by being disconnected from the vehicle for a while.

Your car needs to be outside so the GPS antenna can collect the GPS signal, and have the ignition on to Pos1 to collect alamanc. Takes max 15minutes.

You can observe the almanac status in the service menu. Note that the status is only refreshed each time you call up the GPS status menu - so you need to exit and enter the GPS status menu to pick up when almanac changes from no to yes.
Or just look after the 15min.

Then do your calibration run - drive around, a bit of motorway, a bit of city street driving. The Mk4 can take a few days to properly calibrate, so don't be concerned if it doesn't come right in one day. Wait a week :-)

After the Mk4 has bedded down in your car, and you know everything works, then upgrade to 4-1/100 so that you have the latest software with all bugs fixed. 4-1/100 is found on the V31 or V32 OS discs. The OS discs are global software - the OS applies to every country in the world.

As for coding to your car - it is nice but not always essential. The only issues that may appear are:
1. arrival time. If arrival time doesn't appear, the nav needs to be coded for the X5 (it's a setting that affects older X5s)
2. radio type. Widescreen mode determines what radio options are displayed and thus needs to match the fitted radio. You cannot see what it is set to without NavCoder, but you will know it is right if all the onboard monitor functions work, specifically INFO and SELECT buttons.

You could use my NavCoder software to code ther nav to exactly your personal requirements. If you want spoken instructions in Russian, Italian or Spanish, NavCoder can do that for you :-)