Thanks guys. Looks like she's going to go with the ashtray mount 2point5 spec dock. Questions:

1) I assume the tray can be closed when the ipod is removed
2) I assume this works in conjunction with the DICE. So, $150 for the DICE and $150 for the spec dock. Ok....but ouch!!
3) BSW's install pdf has some brief info about mounting the spec dock...but I just haven't seen any other details regarding running the wire into the bottom of the ashtray. Do I need to dremel out some of the ashtray? Any details will be helpful.

Again, I'm a very experience car stereo DIY-er...I just don't have any experience in Bimmers...just Audi's.

Thanks guys!
-Ted