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Sounds like a blown synchro or a shift linkage (archive)
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Posted by Andrew on April 17, 2002 at 22:59:30:

In Reply to: gears/linkage problems w/ 02' M5 posted by mike on April 17, 2002 at 22:16:15:

adjustment. If it isn't going all the way into first you can try rattling the shifter back and forth in neutral first and then shift into first. Whatever, it definetly isn't engaging first gear all the way. I'll bet you anything the dealer won't be able to duplicate. Take them for a drive first and show it to them instead of just handing over the car.

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