MINESAPASTY - I think the setup you described would work fine, that is how my wife's 328 is set up. Have to turn the volume up on the iPod itself or it will be a low signal coming into the AUX feed to the head unit. This makes it sound better too, the signal overcomes any inherent noise more so.

BTW What's a PASTY??

__________________
2012 e70 X5 50i MSport "The Boss" black on black *Well Optioned*