The BMI is just a guide to say whether you're underweight or overweight. It's useful in normally built person.
As you pointed out Sea Daemon... if you're all bulk (i.e full of muscle) the BMI would falsely indicate that you're OBESE.
The accuracy of BMI can be correlated with body fat measurement but it is not easy to measure... must use calipers to estimate fat at excessive folds.. did this a a med student but cannot remember la now..
What I suggest is everyone should do annual health checkups which consists of physical examination by a doctor (including blood pressure monitoring etc) and blood investigation to check their blood sugar level, cholestrol level, renal profile and whatever deemed necessary by your GP.
The cholestrol level nowadays is essential... many young lean persons may have a satisfactory BMI but cholestrol is sky high due to the ever 'healthy' malaysian mamak stall diet.
So I guess the take home message is... use it as a guide (esp if you're of normal built) but don't forget the ANNUAL CHECKUPs.. Put that on your to do list