really? i know it is expensive but if it can be controled thru iDrive i want one..does any BMW dealer has it? im located in seattle area..

The Ipod cable is an after market product so specialty car audio shops will carry and install it as well.

this is why i hate to buy the car as soon as it launches....=(

Quick review of my Ipod experience:
I have had my E70 4.8 for 3 weeks now, and had the dealer install the dedicated Ipod cable in the glove box. I was told at the time of purchase that there were two options, a BMW labeled product and an after market one. I was told that the after market cable could handle more information than the BMW one (I'm not so sure about that as it seems logical to me that any information limitation would be controlled by I Drive. I chose the after market product but ended up with the BMW one, as they said that they couldn't get the other one to work and it was crashing the system!
This is a black cable that sits in the glove box. My G4 60Gb Ipod connects to it, and the BMW logo immediately comes up on the ipod screen and all controls on it are locked. It is controlled in the CD changer. CD 1 brings up your playlists, CD2 has the artist folder, CD3 I think holds Podcasts. Not sure what the rest hold. Here are some limitations. It will only hold something like 255 folders or playlists, and 1000 songs per folder. That required a big adjustment for me as I prefer to just throw it on an 8000 song shuffle! I can no longer do that. I could set up 8 playlist and alternate between them. There is a "random" option but it doesn't seem to work that well and if you skip to the next track in random mode it goes to the next song in the directory which is a pain. The sound quality is good but there is sometimes distortion at high volumes. Any Ipod EQ settings are disabled as well. Each directory takes from 5-20 seconds to open. All in all it is an OK makeshift option, but a bit disappointing that they didn't build it from the ground up to properly interface with Idrive. This ended up being a no chargeoption for me so I guess I can't complain! FWIW they were trying to sell it to me for CAD$500 and I talked them down to $350. In the end they forgot to charge me for it!

FYI- This is not the new 6FL option which is far superior. This is the older option.

Maybe the 6FL is the one they tried to install but failed. If it is that much better, maybe I should push for it instead.

6FL is not a dealer install option...its factory install only. I think they were blowing smoke.

Probably. Thanks for clarifying that.

IPod interface via AUX
 

Excuse my ignorance on the subject but as I understand you can connect iPod through AUX interface in the armrest. Would this be an inferior way to do things regarding signal quality, possibility to control iPod from iDrive etc. My dealer in Canada offered me iPod connection when I was ordering the car but I opted out since they wanted ~$400, which I thought was ridiculous.

Through the Aux interface, signal quality is optimal, and exactly the same with the other connection possibilities. But with the Aux connection, you cannot command the iPod via the iDrive and you have no information on the screen.

With the connection in the glove box (retrofit), you can command the iPod with the sterring wheel, but not with the iDrive and always no information on the screen.

Only with the USB connector 6FL, you have all the possibilities to command with the iDrive and see the information on the screen (need a special cable).