Wow, my XK I think is still for sale. I am going by the dealership tomorrow, I am curious to see if my car had folding mirrors all this time! It's a feature I use all the time when a car has it.

 

The Powerfold feature is NOT on the 2007 cars for Canada or the USA. Stop looking.

 

I'd say either you don't have it, or there's a fault in the module. The 2-button press should always work, even if the automatic fold is turned off. A code reader might show you an error code if the module is fritzed.