Hi Ben,
Thanks for your quick reply.
While experimenting today, I found a new way out to control volume while running app radio.
Try this.
Connect your iphone to CD-IU201S cable and select the front source as ipod1. Then press the mode button on the HU to get into AppRadio mode and run your music apps (Aupeo! or carmedia player). Now you can control volume of the apps via HU volume buttons.
Hope that helps.
Let me know.
Reddy