Have you noticed any differences in sound quality ? The Ipod decodes internally the MP3 files and trasnfer to the car the analog-converted signal, the USB stick transfer directly MP3 data and let's the BMW internal electronic doing the job of MP3 decoding and digital--to-analog conversion.

I'm curious about who sounds better...

I loaded music on the jump drive and iPod 2 different ways. First I burned a few directly from a cd. Next, I exported some from some mp3 files I have downloaded. The sound quality is pretty much the same. The only noticable difference is the cd's seem to have a little more bass to them. With that being said, the iPod and the jump drive sound identical to me. Conclusion....the jump drive or an external hard drive seem to be the way to go. I also tried to view some photos but the iPod defaults to audio and you can only control the iPod via the iDrive. I tried to use the iPod to get to photos but no joy. Hope this info helps gang.......Phil

One of them does....Either the in dash DVD(for Nav) or the changer(in glove compartment)...I've done it, just can't remember which one I used. Although I could have swore that it was the in dash DVD.

The multichanger in the glovebox on 2008 models in the USA market plays DVD movies whilst the vehicle is at rest.

Can this DVD player output to the RES yet? (From last I read, that wasn't an ability)

No, they operate completely independantly.