As most of you know, and from what I gather through several internet sites in addition to my limited experience, the low beam reflectors on 2003-2004 ZKW HID headlights were made of some material that degraded when subjected to the heat produced by OEM Xenon bulbs. This results in a significant decrease in light output as the reflector became scorched. I don't know the exact ins and outs, but I would imagine that BMW and ZKW were and are aware of the defect as the newer, redesigned headlights do not suffer from this problem.
I called the National Highway Traffic Safety Administration (NHTSA) out of curiosity to see if the problem had been noted and if there was anything in the works to fix the defective parts. The gentleman that I spoke with said that an investigation of the issue was opened in 2009, closed at one point, and has been reopened. I gave him my information, VIN, and a description of the problem and the affected cars, and he told me their engineering staff would be sending me their ongoing investigation report with a questionnaire of sorts for me to return.
He told me that the more people who report the issue, the greater the chance of some sort of recall. If you suffer from the headlight issue and have a few minutes to spare, please call the NHTSA at 888-327-4236 to report a vehicle defect. If you would rather not call, there is the option to fill out an online form. Go to http://www.nhtsa.gov/ and click the blue banner to the right "Report a Vehicle or Child Seat Defect," then choose to File an Online Form and go from there.
Thanks