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No problems with SMS, with either part. The iphone's "locked" mode just locks the ipod portion of it. Everything else is still available.
It functions as expected. If you receive a call it will pause, and (if you have bluetooth) you can receive the call as normal. It will resume...
If anybody is interested in the Soundgate piece I can get them a stellar deal on it (I have a friend that works for them). You can keep SAT with...