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My X5 was built 08/05 and the CDC installed by the delaer in 11/05 when I took delivery, so my problems could be that I just don't have the right kit. (Although I can play MP3 and do get the audiotext option) It sounds as if your set up is new so there is no reason why it shouldn't work.
On the "bimmer" site the author uses another program to convert the ID3 tags, could iTunes be the problem?
Unless I can try a disc that I know works in another BMW I won't know if it's the dics or the gear, (or me!)
Oscar
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