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I bought a 32 gig thumb drive and it works great. A couple of caveats: if your music is high bit-rate, then be sure your thumb drive is a fast one (mine is a Patriot 180X speed); if you use a slower drive, it will hang on some of the music ...I know because I tried two different drives which either did not work or worked most of the time, but not all the time until I ordered the Patriot from Newegg. BMW does not recommend the use of hard drives according to my owners manual. Finally, for what it is worth, you are not listening to your music digitally if you use an iPod. The artist and other info is sent over the digital part of the y connector, but due to DRM restrictions the actual music is sent over the auxilliary (analog) connector. If you use the USB thumb drive, then your music is sent to radio digitally. I think that long term, the usb will hold up better than the ipod leaving it in the car all the time.
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