I have the 3G iPhone and everything works just fine (syncs contacts, etc.). The first thing to do would be to make sure that your iPhone software is up to date (2.2 is the lastest, I believe). Connect it to iTunes and make sure that this is the case. Good luck.
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MJ
BMWCCA Member 414020
128i Sparkling Graphite - 6SMT - Black 'ette - Burl Walnut trim - Sport Package - BMW Assist - iDrive/Nav - Comfort Access - iPod - Heated Seats.
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