Just as a final followup to this thread incase anyone else has the issue...
My issue is now solved. It appears to have been a bad IHKA unit.
I purchased one with the same options as my e70 and then had to code the VIN and default code the module for my VO. Note that before coding the unit would not run the AC compressor so it must be coded before it will work.
Before I replaced it I would get strange behavior like the fans trying to blow out the windshield vents when set to max AC. I had replaced stepper motors, replaced the coolant valve, etc and nothing fixed it until I swapped and coded a used IHKA (which was only $50 shipped from ebay).
Now my CCC e70 has almost reasonable AC. I still think the stratified air control in CCC is silly and keep it in the neutral setting so I don't have to go through the selection and settings in the CCC to change it but now it isn't the thing I dislike most about the X5 anymore.
-Rich