I just got a new V50, and I get the same issue when i try with my iphone 4. I called applecare, who at first refused to help me because I bought the phone more than 60 days ago. But when I got through to a senior technician, he said i could do one of the following to fix the issue:
- Use a third party app to restore my iphone to the previous firmware, and in doing so void my warranty
- Wait for new software to be released from Volvo to update the stereo
- or go to my nearest apple store (60 miles away) to get them to test the iphone and make sure that it worked fine
The bit I found the funniest is when I looked at the release notes for iOS 4.2, look
here, it says under bug fixes, "Improves audio playback to car stereos via USB". So basically apple tried to change the software for usb car interfaces, and have well and truly screwed it up for everyone, and are now refusing to do anything to fix the issue.
Apparately, this issue is not solely on Volvos, it also applies to Mercedes, BMW, Audi, Fords, and probably most others. I found a long thread on the apple forums with people asking apple to resolve this issue, and apple just ignoring them.