My 08 x5 works flawlessly with the Bluetooth. Often callers are not aware that I am in the car and on the hands free. The sound quality is excellent on my iPhone 3G and my iphone4.

Make sure both car and phone software is up to date. I had poor call quality on my 135 vert and by updating the software on both it fixed the problems.

As someone else mentioned, I would suggest a test call with the air fans off (AC/heat) in your driveway (no road noise). If there is still a lot of noise, then there's definitely a problem with the phone or the mic in the car.

To figure out which, I'd suggest borrowing a bluetooth headset and seeing if a different bluetooth source (mic) eliminates the problem.

iOS 4.1 coincides very closely with when I got my X5, so I can't offer a scientific comparison, I'm afraid.

However, people noticed IMMEDIATELY that the quality was much improved over using the handsfree in my '06 GX470. To be fair to the GX, however, the quality would ebb and flow depending on which model iPhone I had (I do tend to upgrade every model) and what software I'm using. It was initially good, then not, then so-so, then not good at all again (with the iPhone 4 with iOS 4.0).

But in the X5 it's excellent. It is also a quieter vehicle than the GX was, and I notice that there are two mics - possibility of noise cancelling action going on? - on the X5 and the "aperture" looks larger, but I can't be certain of that. (sorry, I am not an audio engineer)

It also connects instantly, updates contacts quickly - something the GX simply wouldn't do at all - and it seems to work very smoothly.

I do generally run with everything closed, but the A/C will be running to some degree, and I keep my sunroof shade open most of the time.

I assume the hardware has changed since '07, but I don't know that for a fact. Anyone?

In fact, BMWs hardware changes are so far very intriguing - changing in the middle of a model year, etc. ANNOYING, on the one hand, but it's a benefit in the long run.

i hear everyone great but the other side says they cant hear
 

me so well" like im in a closet or something"

My connection always sounded great with my 3gs. Both my 550 and X5 were great. Then I got the iPhone 4! Since then everyone tells me it sounds like I'm talking on the phone with all the windows open. My iPhone had this problem with 4.0.1 and after recently updating to 4.1 the problem persists. I called my home voice mail from my X5 bluetooth and when listening back it sounded pretty bad. At this point I've narrowed it down to the iPhone 4 since my 3GS and my wifes blackberry sound fine in my X5.

I updated to software 4.1 on my 3gs iphone but still the same. :( Is there a way to adjust the volume of the my voice maybe the mic is just to sensitive for me. I have tried to press the volume on the side of the iphone but nothing appears to happen?? Does it matter if I re-pair the phone again??
I have never done that. So basically at rest there is a little background noise present, while the x5 is moving loud "wind tunnel" background noise??? Everything closed (windows, roof, sunshade) and a/c / heat also off.

bump edit http://www.xoutpost.com/../../images/smilies/smile.gif

Just thought of something today, could the wind noise be coming from the sunroof if the seal is not good or something. Could that be blowing on the mic when the car is in motion?? Again the strong wind tunnel sound is only present when the car is moving.

have you tried this forum ?

I took it to the dealer finally got, it back Saturday. They have replaced the TCU in the X5 the telecommunications unit, I asked about the mic but they said essentially unlikely and did the replacement of the TCU. Anyway just talked to the wife today and I can not tell a diffrence it sounds just about the same :(. Should I go the mic route? or Is this just the nature of the X5, 4.8i engine, runflats, cabin noise when driving 40mph or above?? I guess I might have to just live with it.Can someone call me from their X5 to get an idea of what it sounds like?? PM me?