I thought this might be helpful to iPhone users with Blue and Me.
My experience relates to the system in the 500.
The 8GB iPhone on O2 will readily 'pair' with Blue and Me and the Phonebook downloads and appears in the menus. The 'pairing' is retained in memory (thus far!).
Since the 16GB has identical firmware and database I see no reason why it should not work equally well.
I have received calls and the caller name is accurately displayed on the dial at the centre of the speedometer. I have yet to plug the phone into the USB socket to test battery charging but, if USB output proves inadequate, the 12V socket will suffice.
I have yet to test text messaging. I am expecting 'issues' because of the iPhones unusual display but then, given the politics, I wasn't expecting any of the above to work either.
For clarity you may need to rethink some entries in your Contacts because the display width is limited.
To date I have had much less success with the voice activation which has proved unreliable and, on occasions, downright irritating.
That is no fault of iPhone and may well be me.
The stored music is unlikely to work because iPhone (like iPod Touch) runs on a version of OSX which, unsurprisingly, is not compatible with Windows Mobile. As a Mac user I have compromised with Sandisk Cruzer 4GB USB sticks,formatted in XP in Boot Camp, and loaded only with .mp3s and .wmas in named folders. Stick to the naming 'rules' and check your ID3 Tags with something like FixTunes.
Hope this helps. I am also learning and would be delighted to hear of others experiences and ideas.
Chris