Worth a try

i got the same problem and when i took it to the dealer they told me they had to change the filter or something...still didnt change it :S

It's a fungus that grows in the AC grill. The stealer sent me some info about it asking if i wanted a cleaning on my out of warranty 3 series for 150.00. It suppose to checmically treat the fungus and suppose to last about a year. I really don't have problems with my 3 and haven't yet with my new x5. Cross my fingers... knock on wood...

I've had two E39 540's (still own one of them) and now an X5....Both E39's had the dirty sock smell problem with the AC and it seems to be fungus growing on the condenser. Here is the only thing that worked in both 540's which should be similar in the X5. I've tried everything else and this really worked. http://www.bmwtips.com/tipsntricks/AC/smell.htm

Somehow I dont believe that for a minute. My came from the factory that way, and so did the 5 series. Less than a week into ownership of both vehicles i got that odor. So somethings a foot though. As soon as I get a little time i'll get to the bottom of it. I hope

Seems to be a common problem on the E39 board. Once treated the smell went away on both my 5 series BMW's and we only live a few miles away so the climate is the same.

Good luck,

Michael

Thats quite a job. Looks like I'm gonna be smelling that smell till i complain to the dealer. Maybe I can get them to fix the problem next time i'm in for something. Theres always something. Thanks for the info though.

If you are still under warranty they have a sterilization process that is similar. There is a TSB on this issue so if they act like they don't know what you are talking about you need to find another dealer.

Where's that TSB?

My local independent BMW shop informed me of the TSB plus this is a giant issue on another E39 5-Series board which has been discussed at length. I don't personally have access to BMW TSB's but possibly someone here does.