1. Do I have to have a destination in order for the nav traffic to alert me of bad conditions?

2. Will it alert me if I'm in the XM, ipod etc screen?

3. What do everybody suggest when it come to the sterring wheel remote option.

1. Yes, unless you press the traffic button, it will bring up a list of "incidents" that you can organize by distance, alphabetically, or how severe it is

2. Yes, it mutes audio each time it warns you

3. Totally up to you. I have a handheld remote so I didn't bother but thats just me

so just to make sure that I understand you correctly. I need to put where I'm going in order for the nav traffic to update me on conditions. So if i'm just traveling on the highway (with no destination in the avic z2) it won't alert me.

No it wont, but on the map itself, it will show you where construction is, where impeded traffic flow is, and if available in your area, the actual average MPH on the highways around you.

Exactly. I often don't bother to program in routes but check the freeway conditions on my possible routes home as I start the actual drive--so I know which freeway to take. When you pull up the list of incidents, it will pull up everything within like 90 miles so I can pick my way home based on that