So after carefully following the instructions, I initiated the FW update. The Icelink ran for over 30min in "update mode" with no reset. Decided to disconnect the ipod from the cradle, at that point the system continued to recognize the the icelink or Aux input when scrolling through the mode button. Next replaced the ipod into the cradle hoping for the update process to begin again, instead the icelink was no longer recognized by the X5.
Any ideas on how to recover the icelink or reinitialize the system???