When I turn the ignition on, and press the TEL button, MID displays "Phone Connected"?
And the light next to TEL is red.

It seems to me that you have to get to the trunk area and inspect that box. Is there a chance for it to be unplugged or it could be bad.
Where about in the ATL do you live? I'm in Lilburn/Norcross area. If you don't mind making a trip there, we can figure it out together.

Cool. Thanks for the offer. I'm in Duluth. Can you PM ur phone number?

the phone is not paired... with the engine off, get your phone ready to pair, turn the engine on, watch the phone to find BMW ULF 12345, which is the last 5 digits of your VIN. pair the phone using the 4-digit PIN that is printed on the little card in your documents, or on the label attached to the ULF module in the trunk.

If PIN is not accessible, then you need PA Soft, INPA or NavCoder and a cable to "interrogate" the module and pull the pin on your laptop screen. from within that screen you also should be able to force pair the phone, still using the PIN

the module is connected, otherwise you would not be getting "phone connected?" phrase... but it needs to be put in pairing mode...

TMV, you got INPA? with INPA pairing will take only a couple of minutes

I do have INPA also, but never really used it too much. Let me give it a try, but I will probably meet with TMV also.

The message in your quote above, means that no BT phone has been paired.

What ever you do...DON'T press the R/T (radio/telephone) button when trying to pair your phone to the X5.

What happens when you follow the instructions below? Make sure that your smartphone/cellphone is prepared to search for BT devices within TWO minutes of turning the ignition to position 1 or 2 (don't start the engine).

Hopefully you should see "BMW _ _ _ _ _" (the last 5 digits of your VIN should be where the blanks are) in the list of available BT devices...if it appears, then select it. You should now get a prompt to enter the PK code.

http://bimmerboard.com/members/q/ori...0e83%20e85.jpg

you connect INPA to the car ( you may have the engine running, it will not affect the operation but will keep the battery from discharging), go to Communication systems and select the BT module. the next screen will give you the PIN, and you will have a button for pairing - pair the phone, using the PIN off the screen, and you are all set...

I tried following the exact directions and for some reason it doesn't connect. I will try again in a while and I might have to meet with TMV if he has some time.
I will keep u guys posted if I get to the end of it :)

tell us what you did, and how you did it...