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They had problems with that M60 motor and extended the warranty to 7 years or 100,000 miles. On the new motor, that should be correct.
I had the same problem with mine only I was 6 months after the warranty period but was inside the 100K mileage, nothing they would do for me at that point. I got no help at all from the dealership, or BMW of North America. This makes my 6th BMW to own, but after the level of customer service I got this time, this will be my last. Best advice I can give you is if it you bought it from that dealership, have them appeal to their BMW service rep for a possible special exception. It's a long shot, but might be worth it.
Good luck to you, you'll need it.
Jay
*Edit*
There was no recall on it.
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