Here is a quick run through on how this work. This is a 3 series, but will work similar:
Professional CD (non I-Drive)
STEP 1:
Under "Audio", select "CDC" (cd changer)
STEP 2:
This screen will look exactly the same as if you had a cd in the cd changer. You can set up playlists, using your radio preset buttons here. Select "List" to take you to your typical iPod menu.
STEP 3:
Once you have selected "list" you will see your standard iPod menu, showing "Artist/playlist/albums/podcasts etc etc". I selected "Artist"
STEP 4:
Once you are in the "Artist" menu, you can browse using the right knob on your stereo, just like you would with an iPod.
STEP 5:
Select an artist to listen to.
Step 6:
Select a song to listen to.