Do you have navigation? If so, you can upgrade your radio to get the aux input. That is what I do... I have both iPod running through my Aux and my normal CD changer.

Alternatively, you could install the DICE adapter. I think that lets you keep your CDC as well as giving you iPod control.

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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