I'm planning to install the Bluetooth fix CD and then trying the Ducati Bluetooth bypass.
If I unplug the AVIC from the car and remove the connectors, do I lose any information from the system (especially the music library)?
Would I need to reset the unit once I plug everything back in?
no you do not lose things like the music library. You will lose things like the current time, and other minor settings.
you will not lose your music
Thanks for quick replies!
So is a reset required at all? Can I just plug everything back in and turn on the car?
I think I have read it is not always needed I don't remember.
The "reset" you speak of (what people have been told to do) is pressing the recessed button to the right of the eject button which is basically pulling power and then applying it again.
If you plan on removing the Z1 and making the modifications to the harness like I say in the web site, you are basically doing that reset anyway. Once you plug it in, it's "reset" (at least this "level 1" style reset).
That reset is only needed when people are having problems and they are still getting a message about the parking brake not installed correctly. It really doesn't hurt anything, but shouldn't be necessary.... like I said you are basically doing it by pulling power.
When you take out the unit and do the harness mod, when you plug it all back together it will just work.
The "reset" you speak of (what people have been told to do) is pressing the recessed button to the right of the eject button which is basically pulling power and then applying it again.
If you plan on removing the Z1 and making the modifications to the harness like I say in the web site, you are basically doing that reset anyway. Once you plug it in, it's "reset" (at least this "level 1" style reset).
That reset is only needed when people are having problems and they are still getting a message about the parking brake not installed correctly. It really doesn't hurt anything, but shouldn't be necessary.... like I said you are basically doing it by pulling power.
When you take out the unit and do the harness mod, when you plug it all back together it will just work.
So are you saying that pulling the power on the Z1 is equivalent to a level 1 reset? If that's the case, then won't I lose everything in my music library (which is what I'm trying to avoid)?
If its more like a level 3 reset (just losing basic Z1 info) then I'm fine with that.
Would you recommend disconnecting the battery before doing the harness mod or could I just pull the Z1 and its connectors out?
So are you saying that pulling the power on the Z1 is equivalent to a level 1 reset? If that's the case, then won't I lose everything in my music library (which is what I'm trying to avoid)?
If its more like a level 3 reset (just losing basic Z1 info) then I'm fine with that.
Actually a Level 4 is the only thing that will delete your music that's stored in the library. I didn't think you lost anything on a level 1 reset (pulling power or pressing that recessed button on the front). But someone said you lose the FM and AM presets, since I have never used AM or FM, I don't know if that's true or not. But no you won't lose your music, or stored nav addresses or anything.
Would you recommend disconnecting the battery before doing the harness mod or could I just pull the Z1 and its connectors out?
I would just turn off the car and pull the connectors out. It's "safer" for you to pull the negative terminal from the battery (incase you accidentally touch something powered to a ground). But you are just working with grounds, you should be pretty safe. I never do it, but then I have worked on house AC without pulling the breaker. I have shocked myself in the past. 
To be absolutely safe, pull the negative terminal. But I think you should be fine just pulling out the connectors. Some say that when you hook them back up to connect connectors 1 and 2 before the power and speakers connector, but I don't think it matters.
Pretty sure that when you pull the unit out (and disconnect all power), you lose the AM/FM presets. The audio settings too, I think.