I was able to do this successfully. All functions work. To confirm, I have controller 116 and I have an 04/08 build. My car, to my knowledge, never had a software update.
IMO, the CIC controllers are above and beyond easier to use than the old CCC knob. There's less feedback on each click/turn of the knob, so you can actually work faster. The CCC software was already slow, but I realized the high tension feedback of the CCC knob also contributed to the clunkiness/slowness of the system. With the CIC knob, you won't "over scroll" your options, and even if you do, it's a smoother and quick scroll back.
I also gained more shortcut functions. Aside fromt he extra shortcut buttons on the controller, I use to have my * button on the wheel access my phonebook. Now with the Tel shortcut on the controller, my * button is now my shortcut for air vents.
IMO, BMW should have provided CIC controller (be it with old CCC or CIC software) from the start. This improves idrive function by a lot (if you use the idrive alot). The alternative is to learn the voice commands.