I got this problem as well. believe or not, there are quite amount of x5 have that issue.

it's not noticeable if you dont pay attention

I have the same issue but don't think they will be able to recreate in a test drive. Hopefully it gets more frequent. Only have 5k of warranty left

I had this as well, told my SA about it the last time before my intial 50k/4yr warranty was up, he said they couldn't recreate it. If it gets worse at least I have the original complaint documented and the vehicle is still a CPO so it is still under warranty.

update: well I still hadn't gotten around to getting it fixed but all of a sudden my steering wheel telescopes out and down at engine startup like it did when new. I have no idea why this telescoping comes and goes as it pleases - it stopped doing that for a while on its own and I was glad since it's just another part to wear and break. Any ideas why - it's the same remote fob.

But anyway, everyday ever since the telescoping has come back, the rub sound/feeling has not happened. Could be related to the motor in there? I've defaulted the position to one where it hardly needs to move. So far no steering wheel rubbing sound at all.

BUMP> 4/30/2013: this rub sound/feeling while turning at low speeds has come back and is more frequent again. Once again, it does not have active steering. Power steering reservoir (while cold) shows halfway up to the max line so it seems fine. Anyone else figure it out?

Had/have the same thing with mine. Took mine to the dealer a year ago under warranty and they lubed it up and it went away. It's back this year now that the weather is getting warm. Took them like 15 minutes. Removed steering wheel, lubed, put back.