usaret & Supercourse,
Wow, thank you for the information. I will give Musicar a call.
A local stereo shop offered to send the head unit for repair @ approximately $200. Thanks to Supercourse's input, I'm thinking this may end up being the cheapest way to go. When I first purchased the X3 I installed the auxilary input. I plug my iPod in there, plus my wife can plug in her phone for music too. My wife likes CDs because her office is only a 5 minute drive from the house and it would be more convenient than always plugging and unplugging her phone.
I have looked at an aftermarket iPod adapter similar to the one usaret recommended, but it uses a cable for a CD changer which my stereo doesn't have.
Again, I think I will call Musicar for their input. Then, possibly send the head unit for repair and then add the iPod adapter later. Finally, replacing the doorspeakers sounds like a good idea too.
Thank you all for your input. Much appreciated.