I updated this morning with update 2.06. Everything is the same except my movies all now run in full screen mode .which is astounding as they were not converted for full screen. Everything is working beautiful . Picked up my ipod and phone first time and i bought an ipod speaker system for 49 dollars instead of the 129 dollars it was the week before with aux and now have it attached to my avic. Great sound and everything is superb at the moment. But will still buy 3.0 update when it comes out
All credit goes to phantomftr for the info below ,he posted it on Mon Feb 23, 2009 2:58 am and works like a dream
I use Xilisoft Video Converter http://www.xilisoft.com/video-converter.html. It's able to convert pretty much any file into an mp4. Use 640x360 resolution and choose Pan & Scan for the zoom option and all the videos will fit perfectly on the AVIC screen.