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I just had the ipod interface installed in my 2006 330i today and so far I like it. The ipod sits in the glove box. You can control the ipod either through the steering wheel controls or the idrive system. The song, artist, and album are listed on the screen. You can scroll through your ipod by either playlist or artist, or album, or podcast, or song. I've only played with it a little so far, but I like it.
Note that if you get the retrofit they will upgrade the idrive software so you'll lose all your presets. Not a big deal, but you may want to write down your radio settings.
My only complaint so far is that I have a 4th gen nano and the kit won't charge it. But, I'm going to order the Scosche adapter that will charge it. I think the Scosche part is only $20. This brings up another point: the installation of the ipod interface is not cheap, but it works seamlessly with the navigation system (or at least has on mine so far).
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