Yes Yes, you will need a separate DVD player.

Most folks add the TV module, because that is the cheapest way, if you buy a used one from eBay. However, you can add an aftermarket standard video input adapter that would accept the output from your DVD player and show it on the nav screen. Here is an example of one of the video adapters.

http://www.bimmernav.com/~bimmerna/s...3df4335e7edfeb

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SOLD
2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input