What a clunky Bluetooth!!
 

I guess I'm just spoiled. I don't even have Bluetooth built into my personal car, a 2006 Audi A3, 3.2Q. I just use a little Motorola visor clip on device.
To use the wife's X3 hands free, you have to look at your phone book list on the radio to make a call. (no nav)
With the Moto visor clip, I just mash one button then tell it who to call. you never have to take your eyes from the road.
I'm posting this in the hope that the X3 can do this too, and we have just missed it.

Yes, you can activate Voice Recognition which means that you can:

• Dial a number by speaking the number
• Dial a number by speaking a name tag
• Create a voice tag
• Create a voice notepad entry

You need to have the 'speech bubble' button on the steering wheel (if you have the phone prep, then you should have this)

What you will need is an i-bus interface to your PC (www.reslers.de) and Navcoder 2.2.0 (which you will have to pay to register). This will give you the option to code Voice Recognition on your Bluetooth module.

I can vouch this works as I had the same issue (though I do have Nav) and it has improved the useability (and legality) of the handsfree phone in my X3.