Glad to hear that you have it sorted. What was the best way to delete all of your contacts? I cannot seem to find the right menu command on the Droid to do so. No way I want to delete all manually.
Btw... just took delivery of a 2006 330 Ci with 28K miles. I'm soooo excited!
~~~~~ UPDATE ~~~~~~
The same thing worked for me. Thanks Ed-d! You da' man!
For others reading this...
1) Export contacts to your sd card (or other deveice) as a backup.
2) delete all email accounts (some accounts sync contacts) - ensure contacts are empty on your Droid.
3) Create accounts again.
4) Sync contacts back to droid.
5) Pair to your BMW.
Just as a point of reference, I was sitting in the BMW when it was syncing the contacts with Exchange. At that time, the BMW radio indicated "address book empty." Once the syncing was complete, it downloaded the address book perfectly.
So, it was not a third party app that was creating the com.android.phone force close error. The whole thing was throwing up on a bad record somewhere.