Get ready to do a lot of digging online and Fedex-ing to BMW USA.
You are having a transmission failure. A common defect in BMW in your model year. I had it on mine too. Changing of transmission fluid/filter or anything else short of the whole transmission WILL NOT help you at this point.
Without writing in, the dealer would be happy to charge you $6,000 for a remanufactured transmission. You will however still need to go to the dealer to let them see and have it in their record that they've seen it. Then you can proceed...
What you do next will decide if you will end up paying the full $6,000, $3,000 or if you're lucky, $0.
Here's how common it is:
http://www.consumeraffairs.com/automotiv...
http://www.google.com/search?sourceid=na...
http://www.noreverse.org/complaints.html
http://www.consumeraffairs.com/news04/20...
Here's the cause:
http://www.noreverse.org/docs/trannyauto...
Here's what I did: (Answer 8)
http://answers.yahoo.com/question/index;...
So I highly recommend that you write a polite but factual letter, listing all these other examples of other cases to BMW USA after your initial confirmation from your dealer.
This is what your symptoms are exactly.
When you shift to R, the reverse lights will come on as usual, but your car won't move, as if it's on neutral.
Sorry to be the one to give you the bad news....good luck!
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