My '08 E70 plays nice with 4th gen iPod, iPhone 3G, and 4th gen nano. Haven't checked 3rd gen nano yet but can do.
gianteli,
What generation nano do you have?
Also, it's worth noting that there are at least three Y-adapter cables that have been released:
Part 61120440645 (up until about 10/07?)
Part 61220440796 (2008. Which I have)
Part 61120440812 (2009)
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