BMW fitted this IPOD kit to my X5, E53 X5 3.0d iPod connection retrofit kit

RealOEM.com * BMW E53 X5 3.0d iPod connection retrofit kit

It doesnt seem to work well with the Iphone 4, It just displays CD7 and plays what I select from the Iphone. The Next track buttons just pause the song for 5 seconds before carrying on.

Is it possible to update this device for the Iphone 4 or run an App on the Iphone 4 to emulate the old Ipod?

Thanks

Tony