After updating my old iPhone software to v2.0, the BT feature has stopped working. Although it shows as paired with vehicle BT system as well as a Motorola (ear) unit , the BT icon remains grey and the circle keeps spinning. Calls in or outgoing are NOT being routed through BT inside the car.

Also, over at there is a reference (iPhone review by J. Snell) that Apple supposedly is aware of BT NOT functioning properly in SOME vehicles with v. 2.0 software. The original BT version of the iPhone software worked perfectly in my 2007 Grand Cherokee.