My on/off switch does nothing until the valve is pushed in. Did you try venting some air or filling something?

yea, for the hell of it, I took the 20ft lng cable and tried to fill one of my "slightly" low tires. tried with the car running, and off in the "on" position. Nothin. I put two of my bowlin balls in the back, sat on the edge and the Load lvlin cam on when the car started, but compressor line or wires for the lil air thing was not workin.

I'd start looking at the electrical switch and make sure it'* working.

Alright, so the Automatic Leveling Control is operating properly when called on to do so. The problem lies with the Inflator function of the air compressor then. Let me look into some schematics to tell whether I can help out.
Okay, it'* a fairly simple system. A quick check of the air inflator switch: remove connector from switch, then jumper A to B and check if compressor starts. Ignition must be on, engine may be off. This ALC is all controlled by the Rear Integration Module (RIM).

I had the exact same problem!!! I had a nail in my tire and was losing air. I first became aware when the DIC showed check tire pressure. I hooked up the hose and hit the button with the key to acc with no luck. I tried with the engine running, etc. Still it didnt work. I just got the car this June so I took it in and it turns out it was the Rear Intergration Module (N4859). It didnt cost me anything because it was under warranty. I saw the dealerships copy and the RIM was $285 CND. I am guessing yours is still under warranty too.

did your auto lvl work before replacing the RIM?

Yes the auto level always worked. The dealer was able to determine the problem very quickly but it took a few days to get the module in. Once they had it, it only took about an hour to install the new part. Now it works fine. The key has to be in the acc position. markwb had it right!

MarkW.. do you have any testing procedures directly related to this RIM?

Alright, here'* the deal. The accessory inflator switch is merely an input device to the Rear Integration Module (RIM) which in turn closes the ground for the ALC relay which turns the compressor motor on. The inflator switch is not directly linked to the ALC relay. The RIM is black box technology, you can't go inside of it to troublshoot. Chad, check the C1 & C2 connectors on the RIM. Disconnect them then reconnect to the RIM. Also did you try to jumper A & B at the inflator switch connector to see if the compressor would run? Just jumper A & B momentarily to see if you get compressor start. Does the inflator switch have spring return to neutral? When you depress & release the inflator switch, the compressor should run for 10 minutes unless you decide to turn it off before the 10 minutes is up. Finally, there is one DTC that refers to the inflator switch, it is DTC 0697. Basically if there is a fault in the inflator switch ckt, the inflator switch input is ignored and the accessory inflator function is disabled. Let us know what you find out.