Thank you for your patience.
The instrument cluster is a common failure on these vehicles. You can use a used cluster but a manipulation dot will appear on the cluster due to the fact that the mileage will not be accurate. This greatly reduces the value of the vehicle. To avoid this you will need to install a new instrument panel and have it coded to the vehicle. The vin number is written to the instrument cluster as welll as the VO or vehicle order that tell the vehicle what options it has. The cluster is a very important module as it is the gateway for communication for diagnosis. I recommend trying to find an uncoded cluster or have it replaced by your local BMW dealer to prevent any problems with communication in the vehicle. (Although I have seen clusters from vehicles that have the same options installed in vehicle and this allows all the guages to work.)
I do know that pixel repair does work and I have a company that has been used before. You will need to remove the cluster and send it out to them for repair. This should be lower than the cost of replacement. If you have any questions with the process I am sure a customer service rep will be able to help.
The website is... http://www.programainc.com/
www.programainc.com/default.php?go=randr is the link to go right to the instructions page.
I hope this information is helpful.Please accept this answer. Please let me know if I can help you further. If you could please leave a short positive comment on feedback it would be greatly appreciated. Thank you.
BMW Mechanic
Level 1 BMW Master Certification, 9 Years Dealer experience, Team Leader, Shop Foreman