OK boys and girls, I found out about this totally by accident, and think its one of the coolest tricks I can do in the MINI with the iPod.

First of all, you need:

Factory iPod interface
5th Generation iPod
A playlist with both audio and video. (Mine is MINI1)
A playlist named "MINI2"

Step1) Go to Video > Video Playlist > MINI1-PLAYLIST (or whatever you named it)

Step 2) Start an audio file that has a video file afterwards.

Step 3) Let the audio file finish playing, and it will start the video...

Step 4) Wait a few seconds (you'll start to hear static or something), and then press >>| on the ipod to change tracks.

Step 5) Press "2" on the radio.

Step 6) Press "1" on the radio.

Now you can control your iPod from either the iPod or the steering wheel controls and watch videos (DONT DO IT WHILE DRIVING).

Warnings: You can lock up your iPod doing this if you press the wrong things. I've locked mine up 4 times now, and was very lucky to be able to just hold down MENU and the center button for 30 seconds to restart the iPod. There is a chance you'll lock your iPod.

 

Has anyone else tried this?