I've heard certain brands of discs have a problem playing in the radio but I haven't run into any myself. I think you'll find that the iTunes AAC files play too.

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'05 X3 3.0i Alpine White/Gray Leather/Alum. Trim
Sport/Steptronic/Servotronic/Panoramic
Prem. Sound/Staggered 18" Style 114 Y-Spokes