I have a 7000 & ipod video (old school lol). Everything works perfect but if I shut off car when listening to a song, when I restart the car the ipod starts playing from the first song on ipod. The same thing happens if I switch from ipod to another source and back to ipod-starts from first song. Any ideas on how to get it to continue on from where I was at?

Sounds to me like your iPod battery may be shot.  An iPod will generally do that when it powers completely down (i.e. from a dead battery).  If it's restarting at the first song on the ipod, I would say the battery isn't holding a charge and when it loses power from the headunit it cuts off completely.  Is the iPod able to run ok when it's not plugged in to the stereo?

This does not, however, explain why it restarts from the beginning when switching sources.  That piece stumps me a bit.