Hey, I had the same problem with my 09 santa fe, i first tried using the usb ipod cord, but it gave me that same message that it cant connect, i asked the dealership about it, and they have a cord made for using ipods/iphones, its a 2 pronged cord with usb and aux jack, that connects to the ipod/iphone, and lets u use the radio it search through the songs and whatnot, I paid 40 bucks for it. If you already have that cord and your getting that problem, then im not sure what the problem would be, but i hope this helps
this is a picture of it
http://img.diytrade.com/cdimg/395563/87031...IPOD_IPHONE.jpg