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The MS-8 is a sound processor, and the Intravee2 is an iPod interface (amongst lots of other functions) which allows you to control an iPod via the oem head unit. The JBL's control unit/screen is for control of the sound processor only, it can't control the iPod.
There's a few E39 M5 owners using the JBL unit, have a read through some of the posts by ben5 for instance to learn more about using them. The JBL will connect to the 'outputs' of your oem amplifier. The Intravee connects to the wiring where the oem CD changer is/was.
Last edited by DennisCooper; 31st December 2012 at 02:37 AM.