This worked on my 2010 M5. Might work in your X5.

Plug in the Y adapter to the phone and the 3.5 and USB to the car, select Aux input and start playing music from your iTunes collection. Once it starts playing from your collection hit the home button on the phone and then select Pandora. Push play. It should now start playing Pandora instead of your music collection. When I first started using this work around it worked until I tried to skip using the steering wheel buttons, then it would revert to my playlist. Later software updates fixed this along with the display of current playback.

Good Luck.

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Current BMWs
2013 Carbon Black X5 50i M-Sport PP
2010 Alpine White 135ia M-Sport
2010 R1200GS Adventure 30th Anniversary Edition

Past BMWs
2010 Carbon Black M5
2007 Graphite K1200GT
2008 335ia
2005 545i
2004 R1150R
2003.5 M3 Cabrio
2000 540ia
1997 M3 sedan
1997 540ia