Not having a BMW I can't speak directly to that. But for my car the steps are
1) set the car as 'discoverable'
2) put the phone in search mode
3) enter the car password when prompted on the phone
The car is now a 'headset' for the phone and is usable, but it will take a while for the contact list to download from the phone to the car (this assumes you have a voice dial feature built in to the car)

You might try having your phone 'forget' the car connection and then retry.

Edit: it's not a BMW, but you may find some answers here
http://androidforums.com/incredible...tooth-not-working-my-2011-hyundai-sonata.html

 

It is very nice to have. Of course phone calls are easier that way. But I also spend a lot of time listening to the Old Time Radio player (radio shows from the 30's through the 50's), it's so easy to play them on my phone and listen to them through the car stereo.