I just wanted to follow up. I received my iPod/Bluetooth adapter (the same one as in the original post) and it works awesomely!

One thing that is worth noting... When I paired the iPod/BT receiver with my phone it seemed that I lost control of my phone through iDrive. When I tried to repair my phone to the X5 via the iDrive controls it wouldn't pair. It seems that when I paired to the iPod/BT receiver it disconnected by phone-X5 pair. I had to repair through my phone and then everything worked. I have two simultaneous connections from my phone - one to the iPod/BT receiver and one to the X5.

The receiver hides nicely in my center console and everything repairs when I enter the car. The sound quality is pretty good, but I have a high-end, custom system and can hear a little noise coming through -- not sure what that's about yet. This is by far the easiest way to add BT Streaming music to your X5 with the least amount of hassle and money!