It took me a while to find a way to hook up an iPod to my '99 328i sedan. For anyone going through the same process that I did, I strongly recommend the DICE module from Bavarian SoundWerks ($159.99). It was pretty time consuming to set up but has worked relatively flawless since then. Here is the link for anyone interested: http://www.bavariansoundwerks.com/product/514/282/BMW-E46-iPod-Kit-by-DICE/
How intensive a process is this to do? Is there a lot of disassembly of the car's interior necessary?
Yes. It requires you to disassemble the trunk, rear seats, and glove box. It is a little time consuming (2 or 3 hours) but well worth it.
It will take you an hour or so depending on how you run the wires. Here is the instruction manual that I used. http://www.icarkits.com/docs/bmw_install.pdf The only thing I did differently was to run the wire up the passenger side under the door step plates and up to the glove box. FWIW, The kit works great! Full control from the steering wheel and songs are displayed on the radio. The guys who make this kit offer free support on e46fanatics.com, there's a thread dedicated to the kit for questions etc.......
Another thing - there are several youtube videos with step-by-step instructions for installation. Here is the link to the video on how to navigate the iPod through the radio: http://www.youtube.com/watch?v=88_Nl6412bE&feature=related The installation videos are on the right when you click the link.
I was thinking about the I.C.E. unit, but I ended up replacing my head unit with a Pioneer. I has great iPod integration and a good display. I also can hook up a USB flash drive or small hard drive with MP3 files. The best thing is I hooked up an external amp an put in better speakers, some old Quart's and new JL Audio's in the rear with a kick-ass sub.
