I have noticed that bluetooth pairs fine but none of the iPod controls or connections work. It also will not download my contacts. Anyone else experience this too?

Same problem here - Bluetooth connection actually seems to be a bit more stable.

iPod connection and controls via cable ceased functioning.

I did too. The ipod controls did not comunicate with the unit via cable!!! That sucks. I'm a apple developer and sent apple an email regarding the bug. Hopefully, beta 3.0 will fix it. Until then... I wait

Well its good to know that everyone else is experiencing the same thing. I agree though the BT integration does seem more stable so far. Less volume inconsistencies.

I've seen a couple of postings in the iPhone 3.0 Apple Developer forum regarding this issue also.

Beta 3 and the contacts sync again. Still no iPod connection though. And with the contacts syncing, although there are no non-standard characters in my address book, I got some in the AVIC. Its getting better though!

I just upgraded to beta 3. As you stated, no go with the 700BT. I can't understand why though? Supposedly, the ipod wasn't changed in the 3.0 os... Anybody know the sollution?

Ok. The iphone beta 3 OS works on the 700BT! ipod and sync with no problems! I had my usb unplugged when I tried earlier. Just make sure you restore your phone with a backup from 3.0, not 2.2.1 or earlier.