According to BMW NA, only Generation 4 iPods or higher are compatible. See following link. (go through the options to select 2007 X5)

It looks like its time for an iPod upgrade.

http://bmwusa.com/Standard/Content/O...Tips/iPod.aspx

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Michael

2008 BMW X5 3.0si
Space Gray/Black Nevada Leather/Bamboo Wood Trim
Premium | Cold Weather | Technology | Automatic Tailgate | Comfort Seats | iPod Adapter

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2004 BMW 330xi