Factory NAV and DSP w/BMW iPod Interface - low volume

[Gummi Pflege]

Hoping someone is more familiar with the Apple stuff....

I bought my '06 4.8is a few weeks ago, it has factory Nav and it does have DSP. Come to find out, it already had BMW iPod interface installed (BMW piece, 30 pin Apple connector). I don't do Apple, but for the ease of buying an iPod and being able to leave it in the vehicle and connected....I figured why not. I borrowed a friends 5th gen iPod Nano and it powers on, a BMW roundel even appears on the screen (I'm thinking "ah cool", never dealt with this stuff before ). I cycle through mode to find AUX, it doesn't appear. In fact, when I removed the iPod and reconnected....I would get a glimpse of audio and it would show the track number and time on the Nav display. After about 2 seconds, it disappeared. Mind you the power is still good on the iPod, it never flinched.

(at this point I removed the Nav unit from the dash to confirm the type of installation that my X5 had, and found the iPod interface connected correctly and in place)

I decided at this point to bypass the iPod connection, and instead install an aux port....and use my Android stuff or another device with the 3.5mm jack. I actually picked up an iPod shuffle brand new. I threw some music on it, went outside.....and installed the aux port connection. Cut on the shuffle, had the radio on a FM channel at a listening volume.....and scrolled through mode. I see AUX as an option (thank goodness), so I select it and hit play on the shuffle. I assume at this point I will have zero control over the iPod shuffle since it is a 3.5mm port instead of the 30 pin. I can barely hear a faint sound from the speakers, so I crank the volume literally to the MAX....enough to hear feedback through the speakers. The audio from the iPod is barely at a listening level. I know there is an issue or I am missing something probably easy.....so I cut the iPod off and removed the aux adapter from the harness. You may have guessed what happened next, as the radio diverted to the FM channel and blew my eardrums out. I think I peed a little too.

Something I may be missing here? I've done about everything you can think of to the E53, but never did more than install the BMW Interface over the years.....actually never had a problem. Anyone been there?