I have a '00 323i (E46) .. I have a factory cd player in the dash and also a 6 disc changer in the trunk. When I insert a CD in the dash it will reject it and say "CD ERROR". I can play cd's fine from the changer in the trunk. I have unplugged the changer and still tried the dash unit and it still says CD ERROR. Sometimes it will accept the CD but it takes several attempts (like 8-10). I am not using MP3 cd's or burned cd's. They are store bought CD's.
any help would be appreciated ..