The problem we are having with our 2003 E46 M3, is that upon putting the car in reverse, and then driving away, the auto mirror down feature (passeneger side) is not fully returning to the original position (driving position). and thus is still angled slightly down, The dealership says they replaced the motor and this did not correct the problem (now they are claiming prior body damage in the door is causing the problem) there is no damage to the mirror or mount etc. I told the wife to go tell them one the the "brains (modules)" that controls the mirrors must be malfunctioning. Does this seem correct?

I basically think
The mirror is in perfect condition
The door, although the skin may have been replaced at some time is fine.
There must be a controller problem.

Thoughts?

Interesting problem.
Do you have power seats?
if so, try using one of the seat memory buttons and see it it will return using that.

If you leave the selector button to the right, the mirror will not move when you put the car in reverse. I can't stand the auto down feature. I realize that is not a solution, but if you can live without that auto down thinger - that should work.

that is not true if he has power seats!
With the Premium Package/Power seats the mirror only moves in the right/passenger position... if activated.

This would happen on my 328Ci I think... it wasn't the exact same situation but similar. I just never use auto down and the problem was solved

I have this same problem in my 7 series. There is a module in the pass. door that controls this function and probably needs replaced.

This is a simple fix when hooked up to the dealer DIS. Before chiming in totally does the mirror have full range of motion when using the switch, or does it stop in the same place then too. If it moves all the way pm me and i'll tell you how to have the dealer fix it. The simple activation isn't enough.

If you leave the selector button to the right, the mirror will not move when you put the car in reverse. I can't stand the auto down feature. I realize that is not a solution, but if you can live without that auto down thinger - that should work.

The default auto down is aiming at the ground. Have it set for proper adjustment (for your height) and you'll like it a lot.

the thing is, to get it to set to your prefered position, you first must make sure that the mirror selector setting is set to Active.
That can only be done at the dealer, and only if you have power seats.

If you don't have the power seats it will never work.