If you have an iPhone 3g, DON'T let iTunes upgrade it to software version 2.2.1 if you have Bluetooth in your BMW. I just found out the hard way that 2.2.1 is not compatible with BMW Bluetooth (at least in my car, a 2007 328i Coupe automatic). While Bluetooth still connects, it can't dial the phone. This is a known problem at Apple, I just got off the phone with them. There is no fix. Apple won't let you downgrade to the 2.2 software, which does work. Their only suggestion is to wait for the 3.0 software and see if that makes any difference. I'd guess that BMW will upgrade their software to work with that release at some point. In iTunes, you can disable auto-sync on the page that is displayed when you connect your iPhone to iTunes.
Theoretically, it is possible (in actuality it's possible as well) to downgrade the firmware from 2.21 to 2.2, but not in a method that Apple approves of. The method used to downgrade is almost the same method used to jailbreak/unlock your iPhone, which is against Apple's policy and doing that will void your warranty if Apple finds out. But, it is possible. I will not post links on how to do it, but if you Google it I'm sure you'll find something.
I can do all functions w/Bluetooth and 2.21 If I select iphone as audio source, I can dial on phone. I can dial on idrive, answer calls that display, hold calls, terminate calls. Hope this helps
iPhone I have 2.2.1 installed on my iPhone and have a 2006 Z4, have had no problems with the phone since the dealer showed paired them for me.
I've got the 2.2.1 version on my iPhone and have no problems dialing a phone number. Anybody have the 3.0 version installed on there iPhone yet. Wonder if there are any problems with that version.
But developers have had the 3.0 version for over a month now. Just thought somebody may have gotten the developers version.