SO..to clarify a little with everyone.
BMW does offer an IPOD direct plug in, if you have the 6 cd changer in your glovebox..it replaces that and literally plugs right up into that. you do have to get some coding done at the dealer for it.
BMW ALSO offers an aux plug in for the e60 m5's. i just picked that up. 64 bucks with my BMWCCA discount

. plugs into the back of the CCC(nav) into an open slot. does not require any coding at all, and is setup in the glovebox.
hopefully this will help clarify for everyone a little. i ended up going with the aux because i heard the 300 dollar ipod interface kit, though lets you control your ipod from your idrive..you can only listen to the music on your ipod..i sometimes prefer pandora, and also..if i ever decided to switch to an android phone i'd have to go out and buy some crappy ipod to keep in there. so you do lose charging functionality, but gain others, which i think i can live with. hope this helps everyone! if anyone needs pictures of what the aux connection i bought from BMW looks like i'll be glad to provide.