Yup. The iphone works fully on my '05 Z4 and also my '05 525i. Full address book transfer with just over 550 contacts and all other features work as well.
2005 BMW Z4 Roadster 3.0
- Black Sapphire with Dream Red Extended Lthr / Premium Pkg / Sport Pkg / Heated Seats / Xenon / NAVIGATION / 6-disc / AUX
2005 BMW 525i
- Alpine White with Beige Lthr / Premium Pkg / Cold Weather Pkg / 166 wheels