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I had the same. Apple replaced without problems, chap in the store even said it was something they were aware of. A couple of mates have had the same too and got theirs replaced.
**Bringing this thread back to life**
I have one and use it with my iPhone and iPods, each time I change the HU to the CD changer, it now decides to show a message: NO CD and then goes back to radio... It was working perfectly, just one morning fails to work! Anyone have this issue? Is it...