If you go to pages 187 & 188 in the same manual it clearly states music can only be stored in the on board music library by use of the USB port in the Glovebox. The iphone however will not work through that port, only the one in the armrest or via Bluetooth.

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Me:
Current: 2011 E71 40D Vermilion Red/Beige Nappa

Wifey:
Current: 2012 R80 Countryman SDX Green/Cream