I've never had an issue with my Motorola T505 either with Navigon and iPhone4 and recently I switched to the new Blueant S4 and I'm getting the cutoff as well. I also had a Jabra 700 that cutoff the first bit of the Navigon audio commands too. Something is definitely different with the T505 as it seems to work ok.
James, IrishVixen, and Allonym -- all of that is very helpful input.
James, would it be possible for you to listen very carefully to your Blueant S4 in a quiet setting and report whether you hear what I hear in the Jawbone ICON? The steps to reproduce it are
1. In the Navigon app, Start Navigation to some point. You don't have to be travelling, just have the map screen with the first instruction showing.
2. Let the app 'settle' (become quiescent, quiet, whatever...)
3. Now for the careful listening part. Tap the instruction (turn arrow) on the lower left screen. This is what I hear
At ~ 1.5 sec after tapping the screen a faint but audible click in the earpiece
At ~1 sec later another faint click just as the (remaining part of the) instruction starts to be announced
At ~ 5 sec after the instruction has finished, another faint click
To me, it seems like the BT device goes into some kind of power-saving mode 5 seconds after it stops receiving the audio stream from the iPhone. When the iPhone sends another stream, the BT device has to "wake up" (the first click), then play the stream (the second click), and if nothing more is received within 5 seconds it falls back into "rest mode" (the third click).
So the iPhone responds instantly to Navigon's instruction and transmits an audio stream to the BT device. But the BT device isn't ready to instantly play the audio stream through its speaker (and it is not buffering the stream, either). We only hear the part of the stream delivered after the BT device has woken up.
I have tested this idea in two ways. First, if you wait for the instruction to finish and then tap the instruction again before 5 seconds has passed, the instruction is announced in its entirety. Makes sense -- the BT is still awake and the entire stream is received and played.
Second, run an app in the background like iPod or Pandora to play a continuous audio stream. When Navigon interrupts with an instruction, the entire stream is heard. Makes sense -- again, the BT is already awake and responsive.
Before I contact Navigon I'll present the problem to Aliph (makers of Jawbone). I've had good support from them in the past.
By the way, um, I'm still a bit noobish here.

Have I hijacked the original thread baddly enought to start a new one?