I was on that flight too and I am still trying to get compensation from BMI Baby. I have just discovered this forum so I have done everything on my own.
So far, I have sent a 4-page letter to BMI Baby in Sept 2008. They replied in October 2008 saying that they were sorry but that they wouldn't give us anything. Then we contacted the European Commission, who said that they couldn't do anything but that they were trying to set some examples because many airlines companies did not respect the passagers' rights. So we contacted the Flying Authority in the UK who contacted the Flying Authority in Spain, as it happened there, as well as BMI Baby. Until then, BMI Baby hasn't reply to the three letters from the Spanish Flying Authority. We were advised to wait until September 2009 before going to Court and ask for compensation.
In addition to what was previously said on this forum regarding compensation, you should know that Article 14 of AC261/2004 was broken as there was no copy of the Passengers Rights available in the entire airport. BMIBaby also denied us the entilement for a drink, a phone call or Internet access, accomodation... when we asked the staff for that on the 25th July 2008.
What about you? Are you still fighting for your rights? Keep me updated.