First when the unit starts it says "Bluetooth Active",
That means the bluetooth NT-BT1 is connected and working.
but when I go to the phone menu I can not select any buttons except for phone book, which is empty.
That means you haven't paired a phone yet.
When I try to register my phone my cell phone sees the AVIC but when I put in default password 1111 it will not accept me. Any ideas, what I am doing wrong.
Well, you can go in and change the password to something else, you can change the default password in the Z1 to something you are sure of. Usually when there is a pairing issue, people realized that the password was something different than they thought.
What works for me, set the password to something you know. Then set your cell phone to discovery mode, then initiate the pairing with the head unit. You can try either. If initiating the pairing with the head unit doesn't work, try initiating the pairing with the phone. One of those should work for you.
I try to follow the manual instructions but when the buttons are not pressable things do not work out.
I'm not sure what that sentence means.
Also how do you turn the unit off while driving?
As smarsh said, there is really no "off". Just "sound off".
Set the time?
In the regional settings you can set the time zone. I think it does California time be default and you can do +/- hours, but the minutes are set by the GPS.
Nice unit but the UI could be a little more intuitive.
Yah, that's my problem as well, not something the wife just went in and started using without help. But once you get used to it, it's not too bad.