After the iPhone update, started having the same problem of freezing up. I just took my car back to the dealer, they said they will have to order a new audio unit.

 

I have the same exact problem. I hope this is a problem with the firmware and not the head unit... if they start to take apart my head unit, theyre gonna see that i've disabled the aux video lockout. And they would probably give me grief for that.

 

I have the iPhone 3G and this was doing it with Firmware 2.1, but NOT anymore with Firmware 2.2!!

Works perfectly now.,