stuterhay, in the end the phone continues to loose sound and the volume bar is gone. I am taking the phone into the Apple store to see what they can do. I purchased her iPhone and mine at the same time. We only have this issue with her iPhone. When I do what I described it works, but within hours of changing and correcting the problem, it goes back to the same issue. Just so you know, everything I talk about is actually on the iPhone, not in iTunes.
The image below shows the button that I describe.
With the phone not plugged into anything I get no volume or sound through the external speaker. When I select the above highlighted button I see this menu below that pops up. (Don’t pay attention to the Living Room button, I run an Apple Airport in my home to stream music to.) Dock Connector should not be selected because it is not plugged into anything at this time, therefore I get no sound out of the external speaker. I can get sound through headphones if I plug them in, but once I unplug the headphones I still get no external sound.
Once I plug the iPhone into the connector in the car that allows the music to come through, the music comes through the stereo with no problem. When I disconnect the iPhone I know have the below options that appear and with iPhone selected all external sound works just fine. Typing sounds, swooshing when you unlock the phone, volume bar appears when you adjust the volume for ringer and others. Problem is, it only lasts for an hour or so and goes away on its own with no reason why. I have even disconnected all the Airports in my home to see if there was some conflict there…with no luck. Once again, I purchased my phone at the same time as hers and I don’t have this issue at all and I plug into the same stuff and connect to the same docks and such that she does.