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Ok - problem resolved. So apparently the fix for this is to also turn off the parking breaking break and then perform the reset:
1) key in the ignition
2) foot off the break
3) go to 2nd ignition position (not starting the engine)
4) click iDrive to click OK on the break warning message
5) tap foot on break and shut off parking brake (if you are a manual trans, make sure your in gear not neutral)
6) Hold down odometer reset to get into the reset menu
7) Press the reset button on the turn signal once to get the 'reset question'
8) Press and hold the reset button on the turn signal until the reset is performed.
9) Enable parking brake
10) Start car to confirm no other reset messages are present.
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