I went with a DICE iPod controller in my X. Mine is the smae year and model you have. Works excellent. I fed the cable out the center console, so I can reach the iPod while driving, if needed. But you can do it through the glovebox, too. Check it out:
http://www.bavariansoundwerks.com/ca...d-Integration/
At the same time, I also installed XM radio, and bluetooth for my cell phone. I'm pretty wired.

My stereo installer guy did it all in about an hour. Piece of cake, and all the items are controlled by the dash and steering wheel controls.
Have fun,
Dave