My X3 was manufactured in late April, and I am able to play videos with my media adapter. I did do some coding, but I don't recall if I was able to play videos prior to my coding (I coded so many things I don't remember!). It was in the following module:
HU_NBT 3003 API_USB_VIDEO --> both
Videos shows up as an available menu option.
Glad you posted this because I do have another question which my BMW dealer is unable to answer. I do not see a "plugin" option when my iphone 4 is attached to the media adapter in the ConnectedDrive screen. Is it possible that they also disabled this feature as well? Plugin is an iPod out menu replication view in the idrive screen which provides an alternate view to the BMW default view for playing media files. I have not found any information as to whether this is a code-able feature.
2006 330 XI
2014 X3 35i