This is for a 2010 335i sedan without iDrive and with option 6FL (iPod/USB integration) and option 677 (Logic7 sound system with Surround Sound and Digital Sound). Can someone please confirm that if the iPod is connected to the audio system using the Y cable from the 6FL option, then all songs from the iPod go to the AUX port through the line out pin as a low-level analog signal? Nothing will go through the USB port except for charge and sync/control information? On the other hand, if you use the iPod USB cable (the iPod is seen as a USB hard drive), then the output is digital straight to the system for DSP and amplification? I know that DRM songs will not play using the pure USB connection. However, will the non-protected AAC, WAV, FLAC, Apple LossLess, etc. files play as well? Or just MP3 files? Finally if a there a place with an FQA or manual for the 6FL option?? I haven't been able to find anything. Thanks!
Confirmed No. According to Apple, iPod audio output is analog period. In addition, you probably won't see the correct information on the MID (in terms of sorting by top level folders such as playlists and genre and album).
Link to USB Audio Interface Info If you are going to use only the USB connection, it's easier to just use a thumb drive. Here is info on what works: http://www.m3post.com/forums/showpost.php?p=4368576&postcount=23