My E39 trunk button would not work but the key fob would unlock the trunk. This is because the lock on the trunk is in Valet mode. To get out of valet mode, stick your key into the trunk lock and make sure you it's in the vertical position.
I thought this was an electronic issue at first and didn't think much of it. Just a slight annoyance that I had to use the key fob to unlock the trunk. I figured it would be very expensive to fix so I didn't mind. This became an issue when I had to turn of the car and use the key fob for the trunk. I looked online and found other owners having this issue.
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