Here is the dea!! This happened on my wife's 03 X5 4.4. We just did a road trip from NM to CO and while driving at night I kept having oncoming traffic flash me like my high beams were on. I don't drive this car much except on long trips so I don't know when this issue started. Now that we changed time and it gets darker earlier my wife is driving a little bit at night coming home from work. She said just in the last couple of weeks oncominig drivers have been "flashing" her pretty often at night. It dawned on me when we got to our destinatioin that the auto leveling was not working.

The only thing that has been done recently to the car is I had the left side front cv axle changed, and I swapped out my summer to winter wheels/tires.

Since I am not at home I don't have a lot of tools/resources but I have been on the forums reading about this. I jacked up the front right side of the car and checked the position of the auto dimming switch arm and mine seems to be in the correct position that is pointing horizontally towards the wheel not pointing down as some pics have been posted.
0 <----[+++] This is how the front sensor looks right now. The 0 is the tire, the arrow is the arm and [+++] is the sensor box. Sorry I don't have photo capability right now. I have not checked the rear sensor yet.

I looked at both headlights trying to determine how the auto leveling works. It appears that there is a vacuum line that goes into the back of each headlight which I assume works some mechanical device inside the housing that moves the lights. I cannot tell where the line goes to.
Here are some questions that I cound not find answers to in the forums.

1) Does anyone have a good idea how to trouble shoot why auto leveling will not work, is it a fuse, a relay, the sensor I mention?

2) Are the lights mechanically moved by these vacuum lines I mentioned?

3) If I take the sensor arm off the front sensor with the front wheel off, can I manually move the arm to see if the lights react to the movement?

4) If a rear or the front sensor is out does it disable the auto leveling, meaning if one is out?

5) What position should the rear sesor arm be in relation the rear wheel? Should it point to the wheel like the front one?

6) I suspect until I figure it out, I can simply adjust the headlights manually, you know to keep from disrupting other drivers at night and is this a good idea?

7) I will be glad to post pictures of what I find along the way to help assist anyone in the future but I am technically challenged. If I take any pics, what is a good way to save them then post to this forum. I have never done that.

Thanks in advance for any input.