I just tested the cable on my 325 and damn it works. I wasted >2K. But I didnt pay for it. Damn the AB engineering for not knowing.
So for all those who has the USB/AUX port, buy this cable. The interface is better than my BMW iPod interface. It works with iPod Nano, Classic, Video and Touch. When you select audio, iPod appears in place of the Aux or USB. I think the CDC is still there. The selections for Genre, Artist, Album appears as a menu on the dash display. All steering controls work. In the case of the BMW iPod interface I have, the Genre, Album and Artist appears as 1, 2, 3, 4,....
I dont have an iPhone to test. You are welcome to come over and test it. I won't know if it can work with iDrive or Phone preparation.
It is called "Cable adapter for Apple iPod"
P/No 61 12 0 440 812
Price is Rm380.54
Note: Only suitable for iPods with DockConnector after launch, January 2004.