It says it in the PDF file that the "Function Requirement" is that the lower portion is closed.

I'll post the entire 2008 manual for your rewiew....It addresses all your questions. Auto tailgate is on pages 33-35. BMW says I should receive my '08 next Friday. Will give review/pictures on Auto tailgate, auto hold, and DVD changer.

The upper portion will not close with use of the push button if the lower tailgate is not closed completely. The auto function only controls the upper hatch portion. Push a button on the console or fob and the hatch will open to height set in the idrive. Push the button on the hatch door and it closes automatically.

One more question if it's already known - can you manually open/close the top if you wanted to? I know sometimes it's bad for the gears, etc.

Thx for the answers... not a bad design with all the options it comes with but of course would've liked the full control.

Yes you can manually open and close the hatch but it is easier to just push the button on the hatch door.