the ipod integration add-on that i have is part # 65-11-0-036-446. bmw service receipt labels it "ipod i/f most kit". not sure how it's different that the part you mention above. however, it seems to be the same, i.e. it utilizes the cd changer control and is accessible via the glove box. this was installed on my E70 on jan 28, 2008. it was installed prior to G3S and of course G4 iphones, but it definitely does work with them (that is, definitely with 3GS, and i'm pretty sure G4). the only thing that doesn't work 'as is' with these newer gen iphones/ipods is that it won't charge them. i believe this is because newer gen iphones/pods use a different/newer charging technology (usb i guess). that said, as per previous posts, you can overcome that flaw by simply purchasing the Scosche passport, which is simply a small adapter that plugs on the end of the ipod cord in the glove box. this devise apparently converts the charge from the car into the charge usable by the iphone. i'm going on the word of the other poster (and the advertising of the product) on this -- i have ordered the devise, but not yet received, so i personally cannot say for fact that it works, although i'll be very surprised if not.

Spec.dock as an option.
 

I did a retrofit using a spec.dock adapter in my '04 z4, and it worked quite well. Having just picked up an '07 x5 I am considering using them again. The UI and control is much more complete than the 5 playlist option on the factory retrofit.

Has anyone gone that route? I will have to send them a mail, as I'm unsure it will work easily unless you have the factory cd changer installed.

Here is the site:
spec.dock - complete iPod and iPhone vehicle integration

bringing this post back.. RJHD3... did you use the spec.dock?

I posted earlier about having OEM adapter installed and dealer says they can't because I have rear-seat DVD? but I'm getting conflicting messages about the truth to that. so was researching alternative options.

To bring this post back, as of Today, our technology rich 2012.. What's the best way to integrate an ipod to an 07, while keeping the changer, and being able to charge an iphone?

Thank you!