Jeff, I think you are using the E36 method (which is easier), the E46
is different.

Firstly, the clock can be displayed on both the instrument cluster
(press the BC button on the left [indicator] stalk) and on the radio
(press the bottum with the clock on it in teh middle of the left three
buttons).

If the time is wrong, you can set it like this:

Turn ignition to position 1.
To increase the time, turn the knob at the bottom right of the rev
counter clockwise.
To decrease the time, turn the knob at the bottom right of the rev
counter anti-clockwise.

To make it 24 or 12 hour clock press this button once.

Good luck

Nick