yeah you can, you might have to rename the.mdf file to .iso and burn it that way. you need to put the CD in the Mk4 nav unit in the boot. The screen will go black for about 20 seconds before anything happens so dont panic
it worked fine for me 00 330i and a 04 M3, both Australian cars.
someone had some excellent instructions on here of how to do it, search for alcohol 120 and it should pop up. I will search too and when i find it i will post it up if you haven't found it already.