Iphone 3g and Panasonic car stereo problems

Hi,
I have an iphone 3g and a Panasonic CQ-RX400U car stereo. The stereo has a front-panel USB port. I've been using the cable that came with the phone to connect to the stereo and everything has been working great. All of the stereo's iPod controls handled navigation through the iPhone perfectly, and the unit muted when a call came in, etc...
Just today though, it stopped working. The stereo gets stuck, alternating between "READING" and "PAUSE" with no playback. Nothing I tried has worked. I think this may have been the first time I've tried to connect since I upgraded to 2.1 on the phone.
Any ideas or similar experiences? Thanks for helping!

Well
I did some more tests on some of my other buds Iphones
The 2.1 Operating System is definitely the culpret.
Everyone First Gen Iphone and Iphone 3G I tried that had ver 1.xx and 2.xx worked below version 2.1
So, I hope apple fixes this and we get some help bud, cause they screwed something up bigtime when they upgraded the OS.
Hopefully we will have a answer tomorrow when everything opens again. Very disappointed in Apple.
Some of my friends won't even touch the new update since they got their phones because they are afraid the 2.1 will kill their accessories usage in there other brands of USB Decks they just bought for their cars over the past few months.
I strongly agree with them at this time not to Upgrade, whether it fixes stuff or not, would rather sacrifice features and fixes than spent more money on the **** accessories.
Very disappointed that Apple can kill off accessories like this and wonder why people are switching phones due to the cost of accessories that work and die with these new iphones.
We wait here patiently apple for you to reply and see whats causing this stupid error.
THANKS

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