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The newer "New Gen" radios installed from 2003 on do away with the direct digital cable from the CD changer to the radio. So, if your CDC does not have the coax cable, then you do not need it nor the DSP adapter kit.
(I don't have a DICE, so I can not answer your questions about programming it.)
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2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input
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