Yeah, this is a huge problem. The only place to mount my phone in my car is over the A/C vent of the center console. Unfortunately, almost any direction I drive during the day, the sun heats the phone up significantly, even with the A/C on. Forget ATT dropping my call, merely the radiant heat coming through the windshield is enough to overpower the A/C and overheat the phone and shut it down.
The iPhone 4 replaces an original iPhone, which replaced a Motorola Razr, V3i, and Samsung Palm Phone. All of which used that cradle and NONE of which ever overheated, or shut down from heat.
In fact, even when I don't use the phone at all, but merely place it in the cradle, it is piping hot when I get out of the car.
Not really sure what to do about this. Perhaps Apple would suggest I buy another car that has better placement for my iPhone 4?
Other than this one little problem, my phone works great, I've had none of the other problems described by other users and the media. Couldn't be happier. But seriously this is a big problem. Would a case help? Or only make the problem worse?