I presume that this kit is to add iPod connectivity outside of the factory iPod fit with the MFD2 (option in preference to a CD multichanger). I have this and presume it will work with the RNS 510 but with the same limited functionality. The hard drive and SD capability of the RNS 510 will give me artist/track info, yes 
Cass
Yep the MDI kit is separate to the normal VW ipod kit (as fitted to the MK5 at present) and is designed to allow connection of iPod's and USB storage devices and provide direct control via touchscreen.
The MDI kit is only supported on : -
RNS 510 (only for devices with index ..A or hihger)
RCD 510 (not for devices with index AA/ ..AB)
RCD 310
Basically the latest gen touchscreen headunit's.
And yes you get fully album/artist/title display when playing MP3's from the Hard Disk, SD Cards and MP3 CD/DVD's

E.g -
