So did you turn on your smartphone to search for new devices when it said activate phone? I don't recall seeing any lights or other info display on the nav screen (I have nav instead of the MID). But my X5 did appear as a new BT device within that 2 minute period of turning to ignition 2 position.

Does it seem odd that the OP has a snap in connector in a 2005? I guess I didn't think the 05's have that, mine doesn't.

So I just tried again and yes I had the phone search for the BT for over 2 mins but nothing appears on the phone. I also selected the emergency option on the screen (sorry I too have the sat nav screen version) and then selected sos I get a display on the instrument panel saying something on the lines 112. And on the sat nav screen I get a green light then a red light and then they turn off these are on the top right next to the eject button I'm thinking of getting the nav coder to see if this will show anymore than the bmw scanner. I also tried the you tube clip steps posted here but nothing.

Do you have a different phone to try?

I do yes tried iPhone 6. Iphone 4 also a Samsung Galaxy 4. And a MacBook

OP: if if makes you feel any better, I just went through this again this weekend with mine. I verified the box worked by putting it in my 2002 M3 and successfully pairing my phones after failing to pair them in the X5 (yes, I followed the instructions in post 4).

I know it makes no sense, but turn the phone off and then on and retry. That fixed the 'activate phone' message I was seeing. Also, the box seems to be confused if two phones are looking for it at once. Try turning off bluetooth on your other phone so you only have one trying to pair at a time.

As for my X5, I'm going to explore other hard wired bluetooth options (are there any - GROM, USA Spec, etc. type things?) as both bluetooth boxes I have are bricks in the X5. Really odd...

So on your x5 does it always just says activate phone and not pairing. And also do you have the arm rest button as well which you dont need to press.

Finally key position 1 2 or start

many thanks for your response

Actually, I get nothing at all. I don't have a pairing button either.

I had the activate phone thing in my M3.

Nothing happened in the X5. Never saw either bluetooth box. Both boxes worked in the M3. Odd...

To conclude after spending what seems to hours/days ripping it all apart to see if anything was broken I think the main unit is at fault. Without getting another one to test I can't bee 100% sure but it does seem this way. Also trying to find another one is a mind field.

So have decided to go down a new install route. Either parrot MKi9100 or a bury CC9068. Any recommendations.