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I am wanting to buy a new car stereo as a gift for a friend
and I was looking for one with the USB interface

now, i was at the store and the clerk told me if you plug the iphone in through the USB the phone will go into AUX mode and will not be able to receive calls
does this sound correct? when I plug my iphone into itunes doesnt it still receive calls?

also, I wanted to set it up hands free. He also told me that people who do that set their iphone to speaker mode,
so you don't need to find a car stereo receiver that has a mic?

So do I need a receiver that specifically says phone/bluetooth?

I settled for this model radio Sony MEX-BT3700 and here is what I found out in case you are curious
not all phones/ipods are compatible with certain receivers, Crutchfield has made a nice little compatibility chart called Hands on Research

While using the USB mode the Iphone 3GS was still able to get incoming phone calls
bluetooth for phone compatibilty is required for hands-free and most receivers have an internal mic, but you probably want to order a better external mic for clarity as well, though the onboard mic on this sony is quite satisfactory

the radio I picked is the best budget/performance receiver for under 200$, if you have double the cash to spend you might want to get something a little higher-end. A lot of people complained about the 'white ring,' here is what it looks like (pic is far brighter than it actually is)
oh btw, this model radio also charges your iphone when it is plugged in, so you can get rid of your car charger and your bluetooth ear piece
I had planned on doing this a long time ago but got caught up in cosmetics and other such stuff that seems useless now

there's something strange about this thread...

Grape Flavor wrote:

there's something strange about this thread...

I think that's ridiculous, I didn't notice anything odd.

I simply connect via the headphone out to the aux in on my car.I use Simplify Media to stream music from my home server.