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I've had a similar problem with a few Peugeots recently and they have suffered from a few different causes.
One was a faulty headunit,one was a bad connection into the unit,and one was a bad earth connection in the drivers foot well.
I'd start with removing the unit and unplgging and refitting the connector blocks and see if that makes any difference.If not,then have a good look for any earth connections to the body in the area of the dash board.If you still have no joy,then try and source a second hand head unit.
Good luck,and let us know how you get on.
I'd rather push my Alfa than drive a BMW....
Currently in Lagdti's garage:
2004 Saab 9-5 HOT Aero and a 2001 Audi A3 1.8 Turbo