You have an MKIII system (CD).

You need new CD's... You can buy California from navteq for $129:
NAVTEQ - BMW - California, Nevada & Hawaii Map CD 1 Version 2008.1 - 2000-2002

I would recommend NOT using burnt CD's in the MKIII drive... You may put a burnt CD in and it may never come out...

While at it, update your Nav software to the latest version...