As of MY2009 I believe as long as the vehicle is in park you can watch a DVD on the front iDrive screen. I have tested it out and it works, but once the car is out of park you cannot use it due to programing in the software. Also the drive it uses is the one located under A/C controls for CD's, so in actual fact that is DVD drive.

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On Order:
2014 BMW X5 xDrive 35d- Space Gray-Canberra Beige Dakota Leather-Fineline Oak Wood Trim-ZDA/ZCW/417/4FF/4NB/5DL/688

Current:
2013 BMW 535i GT- Neptune Blue-Venetian Beige Nevada Leather-Fineline Matte Wood Trim-ZCW/ZVP/2ST/3AG/416/677
2005 BMW X5 30i- Kalahari Beige-Sand Beige Nevada Leather-Dark Burl Walnut Trim-ZCW/ZPP/ZRC/508/522/609

Former BMW's:
2010 BMW X5 xDrive 48i
2003 BMW 745Li
2001 BMW X5 30i
1995 BMW 525i