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It could be as smiple as a blown fuse or a bad radio module...
The steering wheel controls simply communicate over the I-Bus. Therefore, it is unlikely that the steering wheel is related, expecially if the other navigation functions work OK.
So, I would check the radio fuse that is underneath the main radio plug in the trunk. If that fuse is OK, then you probably have a bad radio module.
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2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input
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