Does anyone know what the speaker button on on the cradle dock does?

The audio button on the cradle is to manually switch phone audio from car to handset, or vice versa on supported handsets.

Smartphone Integration on X5
 

I'm placing an order for an X5 and had planned on buying Smartphone Integration. My assumption that this is necessary for the iPHone to play music through the car's audio system. My dealer called me today and told me "it's just a plastic insert and costs $150 so we'd recomend that you not get it." So I deleted it from my order. Now I'm concerned.

I want to 1) connect my iphone to a charger in the car easily, 2) be able to play music from my iPHone through my car's audio easily and 3) don't want a bunch of cords handing around the dash. Is Smartphone Integration the way to go?

BMW's marketing of this feature is horrible.

If you have the premium sound package, which comes with iPod and USB adapter, you should be fine.

And without Premium Sound?
 

Unfortunately Premium Sound is the only package that I did not order. Am I up the creek? Even with Premium Sound and not cradle for the phone, where are the wires for plugging in the iPhone? Can you run the iPHone through the iDrive?

Did you order the USB and iPod adapter separately? Without that I am not sure where you will connect iPhone to the car. If the car has not gone into production yet, you may be able to still add it.

USB and iPod Adapter
 

Yes, I ordered the "USB and iPOD Adapter" option separately. It was $400 but I assumed it would give me connectivity of my iPod to the car so that I could play music and charge my phone.

Will the connector(s) be in the center counsel or in the glovebox? I'm hoping the center counsel.

The USB connector will be in center console and that's where you connect the iphone and control iphone.

Does the smartphone intergration work with the iPhone 4?

No. At this time there is no cradle available yet for the iPhone 4. You can however still use iPhone 4 with the y-cable and USB interface.