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I can get both my 4 and the wifes 4S to work using the USB cable. I don't do it often though. If I recall you need to plug it on and hit the music button on the phone for it to recognize it as an ipod. After that you should be able to drive everything through the idrive.
I'm just pissed that I still can't stream music through the the bluetooth using the iphone. I also don't like that the ipod out is only available using the cradle. I don't want to peel my phone out of an otterbox every time I plug it in.
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