Just thought I'd pass this info along.
I decided to remove the phone in the center console, besides being useless I wanted the extra space. Removing it was effortless but later when I was driving I noticed that I could no longer bring up the Time, Date, etc. on the dashboard by clicking the stalk on the steering column. I did the check control display and everything was working. When I plugged the phone back in everything worked perfectly.
The solution:
There are three attachments that the phone uses. One is simply a phone jack and the other two are flat clips that connect two wires on one and three wires on the other. I took a short piece of wire and jumpered the three wire connector to connect the 1st and 3rd wire, wrapped it in electrical tape and all is well now. Don't try to jumper the clip that only has two wires, it gets very hot very quickly.
My friend is a master cabinet maker and is going to make me a wooden insert to slide into the phone receptacle. I'll send pics when its done.
'95 525it 88k