This is the N20 engine with timing chain issues. Happens quite often. BMW extended the warranty on it up to 7 years / 70k miles.
Look up your VIN here.
http://www.bmw-rp.com/production/bmw/reimbursement_bmw_portal.nsf
Look up your VIN here.
http://www.bmw-rp.com/production/bmw/reimbursement_bmw_portal.nsf