Originally Posted by ianc
If you examine the front lower half of the armrest, you'll see that BMW has put two small circular rubber pads there to prevent contact between the halves. They did not do this at the rear for some reason, and hence the two halves will rub against each other there and squeak. If you are having this problem, examine the horizontal surfaces toward the rear to check for scuff marks. If you see rub marks, then the armrest is likely squeaking and the noise can be cured by adding pads of rubber to isolate the two halves as I have suggested. I should add that felt is not the ideal material to use for this because it does not have the 'spring' that rubber does to resist compression.
Frankly, I'm a little disappointed in this thread. I had suffered the annoying squeaks for awhile and was able to completely cure them by this method, so I thought others might benefit by my posting it, but instead I'm just greeted with skepticism, condemnations of BMW's part quality (not totally undeserved), or implications that it's not fixable and to just 'live with it' from people who haven't tried it.
Oh well, whatever...
dont be bro, I think you nailed the problem. I too noticed the scuff marks there. I didnt think to add some a piece of rubber sheet though, i just kept thinking about what i could use. My fix was just drive w/ my arm resting on the arm rest, as long as I put pressure, there is no squeak but I can tell this will fix it permanently