The USB will be slightly better and it will charge the ipod. Either will work just fine.
Yep, Realistically, there's too much noise in a vehicle that human ear will probably will not notice the difference.In a vehicle, I doubt you would hear any difference.
Was 4Runner better than on 335i, or the other way around?On my old runner I ran my iPhone at the time off the USB with an alpine deck. When I sold it and got a 335i with logic 7 sound I used the 3.5mm. I thought there was a world of difference in sound.
One thing I noticed is that sometimes (not sure why) when I use the 3.5mm to connect my phone to the HU, it adds noise. Noise as in buzzing with the rev of the engine. A ground loop or something...not sure, doesn't do it all the time. USB is clear as day.