Well, my CA told me to bring the vehicle in so they can check this out and I did that on Wednesday. They spent all day reinstalling software on Thursday and that didn't work, so now I am told (after discussions with BMW NA) that any vehicle manufactured April 2014 or later does not have this feature (not sure if that is just X3s or not). A service bulletin has been issued which I'm going to look at later on, when I return the media adapter! The only thing the media adapter does now is connect to the external aerial and that's not worth $250 to me.
Thought you might like to know in case any of you encounter the same problem.
2014 X3 28i - Deep Sea Blue Metallic - Black 'Nevada' Leather - Brushed Aluminum - Cold Weather - Driver Assistance with Top View - Lighting - Premium - Technology - Satin Aluminum Roof rails - Rear manual side window shades