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I am using the 32G Apple I Touch in my mini and it works much faster then a USB stick. I bought the cable from BMW that plugs into the usb port and aux directly into the I Touch. It works great and it is a very good interface.
Question- Does it charge? and it so what it the part number on the "Y-Cable"
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Well just FYI i just bought the "new" ipod touch 16Gb and it did not work on my DICE RDS kit. no sound, no charging nothing. im really kinda bummed especially since there was no sign in the apple store that said "this ipod may not work with previous accessories". and their return policy states opend items for store credit only, well i had to open it to make sure it worked...yeah im going to exchange it for a nano(just so i can use Nike+ and keep my current 1st gen 8Gb touch for the car.) so hopefully since they didnt have a sign i can get out of the store credit only thing. /rant
It is called a cable adapter part number 61120440812. The cable that comes from apple will not work. (CLAYvt, I felt the same way until I went to my dealer and he plugged in the cable and I was off and humming.)
You must buy the BMW cable and also have the usb port and aux port on your mini. This adapter plugs in and will show up on the audio as a IPOD device. It also charges the I touch as well.