a factory service/workshop manual is not available in bmw, as dealer (at least here in Italy and a good part of european countries) are starting to use online services instead the TIS(tech info service from BMW) , the WDS(wiring diagrams still at version 12.0 from 9/2007), and other staff ...
there's the asap(after sales portal) for dealers that gives the infos online by a big server with everything in it.so no more cdroms, dvds and other goodies we can use and abuse for our cars....bad if you consider that wirings are more useful than BMW think also for a normal inspection....
now back to your first question:
cable is located behind the passenger glovebox, if you have the prep for cd changer.....
if not you have to buy it..my friend was told so by the dealer...
further info about ipod interfaces in my previous tread.....
http://e89.zpost.com/forums/showthread.php?t=336771