Yes it does. No not the album covers, thats my mistake, but it allows you to have more control of the ipod with the touchscreen on the N3. Go look on pioneer's site if you want.
And yeah I didn't think color made a difference to anybody...
And even if the ib100II has a lower MSRP, I was referring to the fact that you can buy the IB100 from ebay or something for cheaper then an IB100II
Edit: [url=http://www.pioneerelectronics.com/pna/v3/pg/division/demo/0,,2076_310069681,00.html#unit=AVIC%20N3§ion=AUDIO%20%2F%20VIDEO&feat=IPOD%C2%AE%20CONTROL]http://www.pioneerelectronics.co