Sounds like the converter lockup may be the cause of the problems, it does sound logical. And for what it's worth, usually when a BMW is in the shop with transmission problems that requires replacement the fault stored in the transmission module is for the torque converter lockup, faulty.

I'd bring it back under warranty and request them to check out everything involved in that circuit and repalce any parts having to do with it that haven't been replaced yet.

I am bringing it back to the shop on Tuesday.
The guy from there hat dealt with the rebuilt acknowledged the problem,also he pulled some codes for the module,but nothing related to the T.Conveter itself.
Tell me Weasel,one of the guys suggested to get the differential fluid checked,should I?
Today I tried to one trick,when it was starting to shudder I floored the gas and it took at least half second for the gear to engage,I am talking about the same 3rd gear at 40 km/h.
Is the're any explanation why the T Converter acts this way just under certain conditions?
Any idea is helpful.
Thank you.

I have the same issue with my transmission with my 2001 4.4i X5. Believe me its an annoying and complex issue. I am going to rebuild my transmission hopefully January. While I rebuild my transmission everything will be flushed and changed so Ill let you guys know whats up after the replacement...

Hi there,
I just got the X back while waiting for a replacement Valve Body casting,let's say the body itself.
It appears the excessive clearance in one of the main pressure valves groove or I don't know how they call it...anyways
So it seams that when the throttle isn't pressed hard enough there's not enough pressure in the line,so there's not enough fluid going to the Torque Converter and so on.
In my case it's a warranty issue less the difference since my Valve Body was rebuilt,but as I can say now,poorly checked for the clearances.
Part is arriving in one week or so,I am gonna let you know how it goes.
I hope Weasel reads it,cause I would like to know his opinion.

Yeah I agree, Weasel is one of the great members on the board along with James and many others.... I truly hope your issue is resolved man, It sorta sucks when you cant do anything to fix something thats such an annoyance like that.

I wish you all the best of luck.

~ Sim0n.

What they said is plausible, so hopefully that's it. Fingers crossed!

When i rebuilt the trany on my 4.6is i decided to purchase a new OEM torque converter as opposed to having it rebuilt. I was informed that they had been upgraded. Weasel can you confirm this?

I' not sure, they probably are, but that's not something I have any info to tell me off hand.

was having exactly the same issues with my transmission and I did the rebuild then the problem came back again after three months.. I ended up replacing the complete transmission with a used one from an identical car with 90,000km

My problem was caused by the heat exchanger (gearbox cooler) which got faulty and mixed up radiator water with gearbox oil.

Good luck with your tranny... I know how annoying this issue is!

Hi Guys,
Valve Body casting has been replaced,but the problem still persists.
Next step is getting diff. fluid changed.
Will keep you updated.