Yes, jlr_1304, I have all these options in order to make my iPhone 4 to work with this additional media adapter.
I like the use of adapter better then going with another device via USB, but I'm not 100% satisfied. I was happy with the adapter until I have realized that if I switch apps while the music from iPhone is playing, then the music stops because the BMW Connected app does not support multitasking. So, you have to keep BMW Connected app turned on if you want to be getting data from the iPhone to your iDrive. If you receive an email and you turn the mail app on, the music/video/radio stops. Then you have to turn BMW Connected back on again. I find this annoying but I believe that the BMW Connected app can be updated to a version that supports multitasking, so that this issue would be avoided in the future.
I do not like the fact that my iPhone 4 can hold only 32GB of data which would mean that I personally can only keep music on my phone and no more space for any other apps or videos.
I thought that I should buy an iPod Classic with 160GB and keep all of my music on it in while playing it with an Y cable, which would allow me to spare the storage on my iPhone 4 for everything else. Well, to me its even worst with Y cable then adapter, because not only that you do not get artwork on the screen, but even with a search button is hard to go through the music list. I really do not like this interface while using Y cable. Not to mention that iPod (or flash drive) will not display the photos/videos/internet radio.
Now, I'm returning this iPod Classic to the Apple store. I will need to be selective with the data stored on my iPhone 4 and wait for another iPhone with a bigger storage capacity. The interface with the media adapter is so much better and easier to navigate than with USB port. Somehow, if feels to me that even sound quality is better via adapter.
Not to mention, that with this adapter you can also use "My Remote App" which is the only way to send google address from iPhone to iDrive Navigation system.