If you rebuilt them before you installed them, the seals are new and will have to break in. Check the factory manual for the condition.
I'm working on a complete bleeding and bedding procedure but, it's really multifacited and this is just one of the faces (probably the one that is affecting you).
Click to view attachmentIt could also be that you have a sticking knockback pin. This would cause that piston to hang up on the pin and not self adjust out to the proper position. Knockbacks usually push the piston "outward" toward the disk to ensure a high pedal however, if one is stuck on the pin, it could work in the opposite direction pulling the piston back in after pressure release.
This problem can be diagnosed while rebuilding and reinstalling the pistons. We use an arbor press. If the piston does not "bounce-back" by roughly 1/16th of an inch, the knockback mechanism is not operating properly.
Click to view attachmentThis situation may also be caused by an out of round rotor, bad bearings or both. Do you have a "thumping" feel when you press your pedal? Extreme "runout" will cause the piston to be forced further back than normal. BMW calipers can "Exasperate" this situation because you have now put a tremendous amount of pad on a smaller solid rotor. That and the fact that BMW calipers are weight pigs is why I really don't like this "mod" (I refuse to call it an upgrade... sorry).
To help you're "overall" condition, you should bed the pads (but again, doing this properly may warp your rotors):
http://www.pmbperformance.com/page/page/1492423.htmThat will help your seals break in and hopefully aleviate your piston's overly agressive return situation.
E.