Yes but you need three leads that are not cheap

depending on which iphone you have, it might be a firmware issue. make sure you have the latest ios installed (go itunes and update). If this isn't the issue, check that your iphone is compatible, there is a list in the manual.

failing that, try a different cable or get it checked in store. also, if your iphone is jailbroken, it might not get read by the headunit.

hope this helps/

no you dont need any thing else but what you need to do is cut the jack head off take the black and white wire put a connecter on it and do the same to the wire coming from head unit which should be labeled steering control. First connect just the iso wires turn the head unit on and tune in a radio station, then turn off and connect the black and white wire to the blue then turn back on and this should have linked the head unit to the controls.

yes and yes.

yes... just connect a lead from the ipods earplug sockect into the front aux in port..the music will play through ipod into stereo.
you can control the music via the ipod

Only with a fairly expensive unit sold separately.

yes... just connect a lead from the ipods earplug sockect into the front aux in port..the music will play through ipod into stereo.

the USB input can only support devices up to 2Gb, the best way to connect an iPod is with a mini jack lead into the front aux input

the USB port doesn't support anything larger than 2Gb.
the best way to hook up an iPhone is to use a mini jack to jack lead and plug it into the front aux input

be aware when programming this unit that there are 2 "pushes" on the big round button - a short push, and a hold - they both do different things.
it can be a bit frustrating following the manual but when you use the unit quite a bit you get used to the different programming quirks