to the OP:
What FINALLY happened? how much were you charged? Did the dealer drive it?
Oh, and sorry this had to happen. I have been considering trading my 07 for a diesel...this is a BIG caution for me.
2007 X5 3.0si Saph Blk/Tobacc Nap
2002 M5 LeMans Blau/Blk Heritage
X PIPE-SHARK INJECT