Correct me if I am wrong, but you don't really need to update your MKIII after v22 because it looks like BMW stopped development for MKIII, the software version 3-1/63 is high as it goes. All the latest software versions are meant mostly for MKIVs.

Anyways, in your case I would try to burn another good quality CD-R in slow speed and try it again. See what happens, this might help but at least it won't make it worse than it already is.

If that doesn't work, I would try to burn v27, for example, and then try it again.