EpicUsername, the USB is for charging only, when I plug my iphone5 into the front USB port I get nothing in the radio. Its not available as a source, so my only option is to bluetooth stream from the iphone. It doesnt get recognised as an audio device, like when using the MDI port on my old Scirocco.
peterdoherty - Absolutely... I was gobsmacked this was the case, as you said, none of the material anywhere says its in lieu of the MDI port or that you lose the port if chosen.
Am now pissing about with media on an SD card to get me something I can play in my fantastic new car!!