I'm one of the early posters to this thread and was excited to see the new solution posted, of turning off the echo. Unfortunately, I too encountered the echo problem - but only with people on the other end. That is, they found it very distracting, but my audio signal in the car was great. I tried back to putting the echo cancel in low and it was fine for two calls, then the garbled cycles started again. Very frustrating, but at least it was a lead - the first glimmer of one in the 10 months it's been a problem for me. At this point, unless I hear of a Pioneer firmware update, I would discourage any iPhone user from buying a Pioneer head unit. I say that with a heavy heart because I've been a loyal fan of Pioneer products for 30 + years AND I believe the problem originated with Apple, since the system worked fine until one of the updates last August.