iPod Software Update Problem

[DaleWA]

I have an old 2nd gen iPod nano that I leave in the car, a '09 135i with iDrive. I had not re-synced the iPod in over a year and then did that last weekend. Now iDrive won't recognize the iPod. In trying to figure out why, I tried my wife's iPod and it was recognized by iDrive. The difference is that my iPod is software version 1.1.xx while my wife's iPod is 1.0.xx. iDrive also won't recognize my iPhone if I use the Y Cale and 30-pin to Lightning adapter. Can iDrive be updated to recognize later iPods and iPhones? The SA is telling me it cannot and I need to downgrade the iPod software and too bad about about iDrive not recognizing your iPhone.
Update: I also asked them about Bluetooth and media software updates for the 1er. I can download these to a flash drive for my X3, but not the 1er. The SA seemed to not know anything about these updates either. He thought that the entire vehicle software would need to be updated, a multi-hour job for at least $270. Seems like the bluetooth/media update for the car should be quicker, like the X3.

Thanks for any advice or clarification you can provide on this subject.