@asantan1 & Jcjs8, I took it to a dealership in Grand Rapids, MI. I asked them how much it would be to reset the stereo to the factory settings, and explained the problem. They sent a service tech out to look at it (he looked like a highschool freshmen). He started off by telling me first that the 2006 E90 never came with bluetooth capability, and the hands free phone, is only for a hard wired phone... SERIOUSLY???!!! Wasn't it about 1992 that anyone saw a vehichle with a bag phone installed in it? I'm supposed to believe that in 2006, BMW actually produced a hands free accessory for a phone that is only found in a museum? After attempting everything I had already told him I tried (to get the auxiliary jack working), he told me it would cost anywhere between $120 and $8,000 to fix it, and he wouldn't guarantee they were even capable of reprogramming the stereo. I of course ran far and fast from the dealership, and have not had the time to visit any other dealerships.
If either of you resolve the issues, let me know how, and where you took it to, if it needed to go to the dealership. I travel all over the country, and will gladly make a side stop somewhere, if I can get this resolved.