So I downloaded the v32 file from NEILOAKLEY site located earlier in this thread and made a CD. It seemed to load and update fine in car, BUT.........
My speedometer no longer works
I have lit idiot lights for brakes, ABS, stability control and check engine.
The NAV system still doesn't give me the 3d perspective I was looking for.

All was perfect before installing the update.

Anyone have any ideas how to correct this? If I buy the OS disc from the dealership and install it, will it correct these problems?

Is it possible that the update was not the right one for a 2006 Z4 with the DSP NAV system?

The nav OS update cannot affect the other items

The common factor that affects speedo, ABS, stability control and engine are the wheel pulses.

You likely have a bad or dirty wheel sensor somewhere.
Ask yourself if you have done anything to the wheels: hit a curb, driven through big potholes or pools of water, over branches, etc

And then you can visually inspect each wheel sensor if you wish. Easier to remove wheel to do so.

Otherwise, a quick trip to BMW and a diagnostic scan will tell you exactly where the fault lies.

Thanks for the quick reply. I normally look at coincidences with a wary eye, and the lights came on the first time I started the engine after installing the updated OS. It seems too direct not to be cause and effect. There were no issues with the car before the OS installation.

Anyways, I will now undergo the dreaded visit to the dealer, who will be sharpening his pencil as usual.

More likely scenario is being zapped by a Martian. They favour E46, especially M3s.

Ask if any forum members live close to you and have scanning tools...

Thanks to all who have provided assistance. It is much appreciated.

I ended up buying the 2010 DVDs from Tischer. I had so many problems with my burned 2006 DVD that I just did not want to deal with that again. I had also bought the v32 software CD from Tischer, but it was cracked when I opened it. I live only a few miles from them, so I took it back for replacement. The others they had in stock were also cracked and they would not be getting any in until today.

Since I already had the 2010 maps in hand, I decided to try the software download. On the third try it worked, after the first two discs (a DVD-R and an inferior CD-R) did not. As I had read in another thread, using a quality disc seems to be crucial. I love the new features and graphics. It's as if I have a new nav unit altogether!