the Japanese spec system is not touch screen is it?

No, the Jap nav in the ibus cars has the identical display to the Euro ibus cars.

ie: it is NOT touch-screen

I'm not having any luck selling this on to the Japanese market so I'm starting to wonder if the DVD deck would fit any other units?? Had a search and came up with nothing.
The numbers on the deck are DV35A020 and 2425KEOS if anyone would like to help:D

The unit is ONLY functional in Japan.

It will not work in any other country in the world.

The DVD nav is / can be fitted to Japanese-versions of:
E46
E38
E39
X3
X5
Z4

I know that now, what I'm saying is the DVD player part may be of use in other units ie remove the deck from inside this unit(which is brand new) and sell it on to someone with a faulty laser or deck mechanism

Sure, that's a good idea.
Open the lid and determine the mechanism type, then advertise it for sale.

We know for sure that it is used in Japanese Alpine DVD nav units as fitted to many BMWs in Japan.

We also know for sure that it is NOT compatible with the VDO/Siemens/Philips Mk3/Mk4 nav units, which use a completely different DVD mechanism

Not sure how big your market might be, but try....

Got to be honest, I still think your best bet is to go back to the original seller and confront him / try to get the cash back via ebay and Paypal. You've got nothing to lose. Other than sell to Japan I don't think there are any other options. I'd told the original ebay seller that he was selling a unit that wouldn't work in this country yet he relisted the unit and his ad said it was compatible with a bunch of BMWs including E39s but added that buyers 'should check compatability for themselves' - a cop out and I think dishonest given that he had all the facts and knew the truth. Hopefully ebay / Paypal would see it your way - I can even give you the e-mails I'd sent him if it helps...