I have not had experience with that particular model, but the fiber optic loop that the entertainment system has makes it difficult for after market add ons. The most advanced yet still cost effective option for iPod i've seen is the MOSTAUX NavTV unit which merely provides an auxiliary jack. If you are willing to spend the money, you can upgrade to the Pioneer AViC unit ($1100ish). If you plan on keeping your rig for a few years this wouldn't be a bad idea but if you are looking to keep resale value intact, maybe not...
pros... iPod interface, upgraded navigation, extended blue tooth compatibility, aux AV hook ups are much easier, sweet look!
cons... lose of off road differential screen, lose of crappy stock nokia blue tooth, lose of out of date navigation, lose of on screen fuel information, maybe decreased resale value.
Yeah, I actually like the factory system and I would like to keep it unless all else fails with integrating the iPod. I had the bluetooth module updated under warranty and it's actually not bad. They basically replaced it with the unit from the 2008 Range Rover. I've used it a few times with no problems at all but i'm sure there's better aftermarket units out there.
Nav-TV is selling the same A/V iPod-iPhone interface (it's really that Alpine system, but private labeled with Nav-TV logo...), a Nav-TV installer posted a video on YouTube a while back - it operates on a LR3/RRS monitor but the basic system works the same way on MOST-equipped Range Rovers - to show how the interface works. It looks a bit clunky and not terribly responsive if you ask me - the interface simulates a TV tuner and the channel number input buttons become navigation buttons of an iPod to move around its content on the touchscreen, although I understand a remote is also provided - but it works. Last time I checked the complete system was close to $1500 in the US. It may be cheaper now. Here is the video: