Sorry to be bugging everyone with problems, but I'm at my wits' end with this one and I'm running out of colourful vocabulary.

I bought the BMW Remote Entry and Alarm kit for my M coupe. I got it all installed without major problems. The bloody thing refuses to go into "code-learning mode."

I have followed the procedure in the manual EXACTLY.
1. I have closed all doors trunk (rear hatch?) and the hood.
2. I have the key out of the car. I assume the alarm is in "disarm" mode since it has never been armed.
3. I have opened the trunk (hatch in this case).
4. I have opened the driver's door and sat in the driver's seat.
5. I have closed the driver's door.
6. I have cycled the ignition switch (after inserting the key) 5 times from "OFF" to "IGNITION ON". The Status LED blinks briefly every time I turn the ignition switch OFF, but does not stay on, nor are there two chirps from the siren.

Everything was done within the allotted time.

Additional data:
1. If I press either button on the remote I hear three chirps from the siren.
2. The hood switch connector is grounded whether the hood is up or down -- I don't think this is right. I have tried the initialization process with the hood switch wire connected and with it disconnected. No difference.

Can anyone help, or am I left to the tender mercies of a dealer?

EDIT: I just tried one more thing. I disconnected the hood switch circuit and tried the remotes. They work! I guess they don't need to be initialized, even though the manual says they do. I guess now I need to get the dealer to fix my hood switch.