Thanks for the comments everyone. Called the dealer for an update this afternoon and was told BMW is walking the dealer through a series of steps to determine scope of the problem. I'm reserving judgment on this approach until I hear their findings and intended plan.
As a couple of you have surmised: I'm not happy to have a problem of this magnitude at this stage of ownership. To say it has dampened my enthusiasm with BMW and the car would be an understatement - but, I'm holding out hope for a resolution that is satisfactory to me and restores my enthusiasm.
Regarding Lemon law options: Like every other state, Wisconsin has certain criteria that must be met. At this point, I'm well briefed on my options and will be documenting everything.
I'll keep you posted.