Many bikes/cars have a restriction on 1st gear, when the revs can rise so fast that the limiter, set at 8500 rpm here, can't catch an over-rev scenario in time. However I can't recall it ever being mentioned or explored on here as a problem with the K16.So I took the bike for a test ride after resetting the TPS.
Bike will rev to redline like it should when sitting still, i.e. in neutral.
When I put it in gear and accelerate in first it is still hitting what feels like a soft limiter around 6800-7000rpm.
I got some Liquid-Moly fuel injector cleaner and put the appropriate amount in the tank, figure it can't hurt to try at this point.
Of course I will be back with my friends at BMW of Escondido Tuesday afternoon... more to follow.
You really need to find somewhere you can legally max the bike out in a higher gear or maybe it would be easier to get the bike checked out on a dyno.
Anyway, keep us posted.