Okay, I broke down and bought the stupid POS control valve. It DID fix the problem !! I also came up with a home diagnostic situation to prove to anyone that the old one was bad. Take the new valve and throw it in the freezer when you get home. After 30 minutes take it out and blow into the input side (where the tube connects from the fan) and blow hard, air should go through it a little bit to the output side that connects to the exhaust manifold. Warning, don't freeze your lips to the cold metal, trust me, it could happen. This proves the new one works, now put it on a heat register in your house and get it warmed up, now blow into it, nothing should come out.
I put the new valve in, and tried the above procedure with the old valve, and trust me, no matter how hard you blow, it doesn't let air through. So I cut it open to see why the POS failed. Below is a picture of the actuating shaft that is on the exhaust side of the valve. See the corrosion !! BMW, do you see it !! That's why they seize up and don't work, it's not lubricated or sealed and protected from exhaust heat and junk !!!
Anyway, I just thought everyone would like to see what the final end result was thanks to our wonderful emmission standards, thanks California, now fall off into the ocean already.