Same problems. Just put this unit in my car. The BT worked great with my HTC Desire for about 1 week, then it would connect, but not make calls, answer calls, or access my contacts. So I removed the pairing from my phone and tried to reconnect. Now have the same thing - on trying to connect - enter the code on the phone and the Avic rejects it.
Is this a problem with the phone or the unit? Seems the phones are touchy? How to make them work?!