I got mine to work by the following:
1. Key on
2. RT button on steering wheel depressed - looking for devices on radio display
3. Turn on Iphone 3GS
4. Key in BT code into phone
5. Voila! Done!
My garage: 2013 BMW 550xi GT, 2007 BMW Z4 3.0si Manual, 2006 BMW 530xi
Retired: 2007 BMW X3, 1998 BMW Z3
Member of BMWCCA!