I'm a fairly new +4 owner as well. I have also had some difficulty getting comfortable in the car (I'm 5'8"). I have the seat fairly well back, so that my left leg is straight with the clutch pedal pressed fully in, I have the seat back reclined well back, my arms are still well bent and yes the head rest is not much use.
I have also had several issues with my car, frankly it's a disgrace when you consider what these cars cost us the customer and what it costs the manufacturer to correct avoidable defects. They just don't seem to get the whole quality and right first time thing. It's very unlikely that I will buy another one after the M3W that I'm already committed to.