Hello again (Budget M3),
I tried to disconnect the Bluetooth, and the problem was still there with both interfaces (Dice/Icelink-Plus), my car's production date is 9-2003, I even tried an earlier model 4.6is production date 2-2003, and a 4.4i production date 6-2001 (without a bluetooth) and same problems after a while (i.e. 2-3 days)...
I used an early generation ipod nano (2gb), an ipod video (30gb) and most recently an ipod touch (80gb), the latter does not work properly at all...
BUT, on the lighter side both worked much better with X5's without navigation/TV screens production date 5-2001.... AND on an E46 330ci production date 3-2005 without navigation... So.... I guess there could be something in that.... but i don't have the energy anymore to troubleshoot, way too much of a hassle...
By the way, the RETROFIT KIT, AUXILIARY CONNECTION can be bought separately for cars 2002 and above and are relatively cheap (50-80$) and easy to install;
P/N 65120153502 for X5's with CD PLAYER AND RADIO BMW BUSINESS (C43)
or
P/N 65120153503for X5's with NAVIGATION SYSTEM, PROFESSIONAL, OR, TV FUNCTION, OR, ON-BOARD MONITOR WITH TV.
They even work with the Sony Walkman and even with my Mobile Phone Sony Ericsson W880...

Regards

Yanal