Well having just ordered the XCarLink and ripping my dashboard to pieces in eager anticipation (and to check the correct wiring connector) I am now stumped as to where to located the iPod.
The glovebox is out as I cannot reach it from drivers seat.
The drivers side glovebox is out as that stores my shat nav.
Which leaves the centre console.
I am thinking inside the roll top of the left of the console personally, but the iPod seems to sit a bit low.
So anyone that has an iPod installed in their E46, put up some inspirational pictures!