I wouldn't regret the purchase - sometimes these things happen. The important fact is that there is support with us when needed.

Feel free to contact me by phone if you would like support in real time.

Quick update... I unplugged the 3-prong wire from the DICE and instantly, my car's alarm system began working again.

How crazy is that?!?!

"2) This iPod worked fine yesterday, but I updated this iPod last night to version 1.2. It would not work today."

That seems like the obvious thing to check first. There are many known problems with 1.2. Why don't you go back to 1.1 and see if the behavior changes?

Take a look at the 3-pin wire going into the DICE module, I need to know where the brown wire is on the BMW side - it will either be in the middle of the connector or the end.

The correct 3-pin cable has the brown wire in the #1 position on the BMW side.

The brown wire is in the 1st position...

By the way, I reconnected the 3-pin cable and the DICE module re-initialized. It seems to be working fine now.

I have a new theory. Tell me if this sounds retarded:

The iPod that was plugged belongs to my friend Kelli. It has some kind of plastic film on the front of it, which I assume is to protect the iPod's finish. Well, I think this film may (at times) be constantly pushing buttons on the click-wheel...

I think the film caused a button on the iPod to be pushed so many times that the DICE module became overloaded and stop working properly. Maybe it affected more than one thing in the car (made my alarm system stop working).

Does this sound possible?

Absolutely it's possible, but it should only cause errors on the DICE kit, not on other parts of the vehicle. Keep an eye on things and let me know if you should need further assistance.