[Also check the other post covering this with several hundred comments – iPhone 2.0 update breaks BMW iDrive contact/address book syncing!]
UPDATE – Sorry guys and girls, it looks like a was a little premature on this one. My contacts DID all show up on the iDrive screen and I scrolled through, jumped from A-N-W-etc and I came in to get the camera for a few shots for this article. When I went back out, my iPhone paired but after a long wait screen there were NO contacts shown! I removed both pairings, powered off the car and the iPhone and tried again but still nothing. I then updated my friends brand new 3G to 2.02 and tried syncing that (which has never been seen by the car before) and it paired but still no contact sync.