I just got the new iPhone 4 from Verizon and am having some problems. I used to own the ENV phone and it would seamlessly connect via bluetooth to the Prius. Now with the iPhone I've had a few instances where I'm driving and realize that the phone isn't connected. In fact when you try to reconnect it, it's not that easy to re-establish the link. Does anyone else have this issue?
I have my iPhone 4 (AT&T) connected to my 2010 Prius for bluetooth calls and bluetooth streaming. To date I haven't had any issues. When you connected the iPhone, did you do the phone portion first, or did you do the music streaming first? You might want to have the iPhone forget the car, and delete the phone from the Prius as well, then start over.
