IPhone 3G bluetooth echo?

Hi --
I had a 1st gen iPhone (1.1.4) that I would pair with my BMW, worked great. Yesterday I bought an iPhone 3G. I can still pair it with my car, but now all of my conversations have a terrible echo. It's impossible to talk to anyone - we both hear a delayed echo of my voice. What is causing this? Is it software? Is it my phone that is a dud? Is the bluetooth in the new iPhone substandard?
Thanks.

Well it appears the following vehicles have BT echo problems:
-Various BMWs
-2008 Nissan Rogue
-2008 Nissan Altima
-2008 Toyota Tundra
Apple sent the iPhone days in advance to 3 of their favorite reviewers and sure enough, one of them also noted the problem.
Mossberg concurs, but complains that "the new phone produced an echo when used with the built-in Bluetooth system in my car."
http://www.pcworld.com/article/148113/firstreviews_iphone_3g_improved_but_stillflawed.html
I imagine it's on Apple's list of iPhone to do's.

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