It requires Jailbreak and an app known as 'Screen Share'. 4.2.1 for iPhone4 was just released and a jailbreak hasn't become available yet. Prior versions are available Suggest joining one of the may Apple Blogs where you can obtain specific instructions. I have that working with the Dension 500, so whatever appears on my iPhone screen is projected on the iDrive screen. Including email. (Not that I'd read/write email while driving)maybe whattheheck as a solution to this ..
But in wondering is there anything i can add that will allow me to play video off my iphone on the idrive .. im thinking not just movies but you tube as well