iPhone-Entune linkup lost, can't conect

Okay, maybe I should just wait for the update. But... I can no longer link to Entunes. Have I forgotten something?

2012 Prius Four

Tried following both with BT enabled on phone and without.

1. iPhone (4, iOS 5.1.1) has WiFi turned off
2. Start Entune on iPhone.
3. Start Car
4. Go to Apps
5. get "must have application running first" message (whatever the wording is)

It has worked in the past. BT Audio works fine, so does phone on BT.

Suggestions?

 

Thanks, I'll try that after work, about the only thing I didn't try!

 

Thanks, that worked, and then the update installed successfully over the air.

Got out at the store, took phone. Plugged in phone, started car, Pandora resumed exactly where it was when I stopped, mid song!

Yay.