The BT tab on the audio screen is for pairing and accessing streaming audio over a BlueTooth device. BlueTooth telephones are paired and accessed through the phone screen, not the audio screen.
NOVASTU, Thanks for clarifying. I figured it was for Audio Bluetooth, but wasn't sure if in addition for Phone, but you cleared that up. I appreciate it as well.
The iPod Touch connects very easily and the quality of sound is much better than the XM in my car. I'm letting XM expire and spending my money for music at iTunes Store.
If you have an iphone 3g (OS3.0 or up), you can connect it to both Bluetooth Phone and BT audio at the same time. After both were setup, as soon as you turn on your car and switch to BT Audio, it will start playing from where you turn off the car last time. Any phone call will interrupt BT audio and it will start again after the call is done. Very handy in dear.
hitechboy - Are you still using your ipod touch to control the music or are you doing it through nav. Mine just says "playing" on the nav screen.
The only control over your iPod or iPhone through the Nav is to pause or play. All other selections must be done on the device itself.