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My 2011 Z4 supports >256k bitrate mp3's (320k to be exact) so I would expect my 2011 X3 to handle >256k as well. As for external USB drives, TECHNICALLY the owner's manual says not to plug these in, but I did try it on my Z and it worked fine. I used a 500g Western Digital brand.
I believe the largest supported thumb drive is 16gig.
Dave
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'11 Z4 30i (retired);'11 X3 28i (retired); '15 M235i Stage 1 Dinan (recalled & crushed); '16 M235i Stage 3 Dinan (retired); '15 X3 28i (retired); '14 328i (retired), 2019 X3M40i (retired); Loaded '18 X1 (retired); Loaded '20 X3MC DG, Black/Tan Merino (retired); Loaded '23 X1 Cape York green and Red/Black interior; '23 Audi A4 Allroad Progressiv
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