I don't know from personal experience, but I have a very good relationship with the dealer I bought my car from (long time client of theirs). I have a Verizon blackberry and was considering switching to an iPhone. I was told by my salesman and backed up by the tech person there that they've "fully" integrated an iPhone into the new X5 - bluetooth, full address book and music connectivity.

Again, this isn't from personal experience, but what was told to me directly by a trusted source at my dealership.

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CURRENT: 2008 BMW X5 4.8 ~ 2007 Porsche 911 Turbo ~ 2008 Range Rover

PAST: 2008 Lexus GX470, 2008 Audi S6, 2007 BMW M5, 2007 Chevrolet Tahoe LTZ, 2007 Porsche 911 4S Cabriolet, 2007 Audi Q7 4.2, 2006 Range Rover Sport Supercharged, 2006 Lexus RX330, 2005 BMW X5 4.4, 2000 Audi S4, 1999 and 2000 Jeep Grand Cherokee Overland, 1999 Porsche Boxter S and others from the older days.