Two problems related to transmission not engage have been reported for the 2004 BMW 325. The most recently reported issues are listed below.
The BMW 325xit (automatic transmission) which I purchased on 2/5/2004 developed a problem with forward gear not engaging on a cold start. The vehicle had less than 1000 miles on it when I first noticed the problem. Typically on a morning when I back the car out of the garage, and then shift the gears from reverse to drive, the vehicle fails to move forward for 3 to 4 seconds upon releasing the brake. I would have to press down on the gas pedal and watch the engine revv to anywhere between 3-5k rpm before the gear would engage. The vehicle creeps forward until the gear fully engages. The problem has no far been rather consistent - it happens quite predictably every morning. I have not however noticed a problem with gear engagement once the car is able to start.
Cold morning start the vehicle revs to 2 -3k rpms with little or no forward motion. Drive is not engaging. Pulling out in traffic was terrifying. Dealer offered several reasons: 1) needed to be broken in 2) needs a software upgrade 3) needs a clutch pack part and finally 4) needs a new transmission.