The iPhone paired with my '06 X5 (no navi) and with my '07 550i flawlessly.
I have the dealer installed iPod interface in my X5 and upon plugging it in to the connector, it states that this is not an approved accessory and do you want to put it in "airplane mode". Just disregard the warning, do not respond, and the iPhone worked perfect. It loaded my phonebook (2500 entries) quickly. My Nextel was worthless when it came to that. My contacts come up on the display above the buttons. That's cool. It even distinguishes whether it is a mobile or home number.
In the 550i (build 8/2006), I also have the dealer installed iPod connector in the glovebox. The contacts all come up on the navi screen and are very descriptive. The iPod feature works great and I haven't had any problems with either vehicle yet (knocking on wood).
All I can say is "nice work BMW".
2002 M5 Bluewater Metallic~Black & Silverstone leather~All options~MKIV NAV~VMR VB3 Square set-up~3M tint~BT~Intravee II~Ice V5 AE~DINAN Front/Rear Strut Braces~PowerChip Alpha-N tune~Smoked taillights~Ultimate pedals~BSW Stage 1 Upgrade w/Subwoofer~e60 SSK~ZHP Shift Knob~CF Kidneys~CNS Racing exhaust~LED lighting~Hella Euroclear Headlights~Angeleye DRL's~HID Foglights~Dinan Stage 2 Suspension~CNS Racing Clutch~Sink drains~ExoticsTuning CF diffuser/fog light covers~SuperSprint Headers