"iPods are generally connected to the 1er with the BMW “Y-Cable”, which can be purchased from your dealer. Many people have negotiated this cable in with the purchase of their car, it may cost around $100 to buy it. The “Y-Cable” is an active cable (has electronic components in it) with an iPod connector at one end, and both a USB and 1/8” connector at the other. The USB connector plugs in to the USB port under the armrest (this option may not be installed in all cars), and the 1/8” connects to the Aux port under the armrest."
Yeah. You can get that exact cable from a cheap place in china on eBay. Its about $4. I ordered 3 for my 09 328i. One broke after a year, I used one of my replacements. Don't spend $100, guys!
http://www.ebay.com/itm/3-5mm-Car-AU...item48527b64dc