Did you try and pass the emission test or did the dealer just tell you that you couldn't. I just got a recall notice from BMW that there is a fix for a different emission problem that you need to have done. If you need the notice number, let me know.
In the meantime, I never got my valvetronic problem fixed. I went to the dealer today for the emission recall notice (no charge, of course) and when he read the key, he didn't see anything about it. I haven't had the problem recently although it has been cold outside. I had taken it to a local BMW expert (not a dealer) and he did something. I could find out what that was if you need.
GOOD LUCK! I certainly feel for you.
I now have another problem with my rear parking sensor. Will probably cost an arm and a leg to fix this one.....