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I tried that when they said they needed to replace the evaporator. BMW only offered to pay for $300 of the repair. (Even talked to BMW myself) And the dealer was not willing to cut me a deal at all.
What really pissed me off about the whole thing is that i complained about the smell a couple of times even when the A/C was still blowing cold and they told me it was normal. Just condensation because I don't drive it very often. (Only 22k miles in over 5 years) I'm pretty sure they knew it was the evaporator all along and just didn't want to fix it when it was under warranty because it's a PITA job to do.
That being said.... After reading that thread I linked to I don't think this is the compressor any more. I'm 99% sure that something in the A/C is causing the radiator fan to run at full speed. I'm thinking a bad temp sensor somewhere.
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