AC only works on MAX
 

My 2007 525i AC only seems to blow out cold air when the MAX button is pressed. If I just have the regular AC button pressed and the temperature set on auto, air is blowing but no cold air.

So it seems to me that the AC compressor is working but maybe the thermostat is not. When MAX is on, does the car ignore the thermostat so that is why I get cold air?

Is it fair to assume I have a thermostat control issue?

Check to make sure your outside air temp sensor is still their. Its located under the passenger side front bumper undertray. Numerous people have reported issues when it goes missing.