If I select video on the AV1, then Pandora will not work. Pandora will only work if AV1 is selected to ipod.
AV2 is selected to video but the iphone video will not play from AV2 (unlike when I set AV1 to video).
Is this an installation issue or unit configuration issue?
Mike,
Yes, the configuration needs to be changed when you switch between playing iPod videos and the Pandora app. But really, how often are you playing videos from your iPod? I haven't even bothered trying. Honestly, if I was really going to play videos in my 987 (which I'm not), I'd play from SD or DVD. I'd think you'd be too busy in your 911 too 
BTW, I think - but am not sure - it is possible change from iPod to AV1 on the scrolling source wheel on the left side of the Z120 screen, so you might not have to go into the settings to reconfigure. I notices one of the icons is a toggle. Pressing it went between ipod, AV1, AV2. I couldn't think of any use for this feature at the time. But it might come in handy for this. Give it a try.