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I had the exact same problem. I took it back to the dealer and could duplicate the problem which happened when I would use bluetooth with my T-mobile G1. They ran some kind of diagnostic and said that it was my phone. So I decided to delete some of my contacts (down to 100 or so contacts) and everything worked fine. Recently got a new phone (My Touch Slide / T-mobile) and things still works great....even with all 240 contacts accessible from the car unit. I'll add......My XM radio subscription is not active....maybe that has something to do with the sudden 'fix'.
 
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