The clock only resets the hours and ALWAYS the same amount of time. It can't be a voltage dip since the time is dead on when I restart the car, it takes a few miles before it changes so voltage is fairly constant. I am going to look through the BMW TSB's to see if there is anything up. As I said before it did not do this prior to the software upgrade though it could be completely coincidental, thanks for your time and efforts, this is an odd one for sure.

Very odd.

NavCoder could help diagnose the problem further to see if the nav is sending a time-change command to the instrument cluster.
The unregistered NavCoder version would be sufficient.

7am becomes 2pm with an equal amount of minutes. I am buying the usb interface and will use navcoder to see what's up.

KiwiJochen, once again thanks for your help but it looks like I introduced a factor unknowingly. I have an Intravee device for my IPOD.. it has an option that is turned on by default that synchs the clock to GPS time. Without specifying a time zone it will either be off by -7 or -8 hours depending on DST here in California. I resolved it by changing my google search parameters to "bmw nav time offset" and came up with the solution.

In some BMW, it´s possible to code the IKE to sync time by nav. Not by radio-clock. Carsolutiion (e-kombi) for example earn money with it...

Well done Sherlock :-)

It wouldn't have taken Sherlock so long to find it... nor would he have been the CULPRIT!