I've been enjoying my MINI Connected functionality a great deal since I've taken delivery of my JCW. Now after roughly 3500 miles and 5 months of daily (multiple times daily) plugging/unplugging my iPhone, I've started to encounter issues with the iPod out function. I didn't use this function much at first since it eliminates the cockpit clock. I eventually decided sacrificing the clock for usability was worthwhile and started using the iPod out feature. I've really grow to like it for several reasons:
1. Interface familiarity
2. Ease of use
3. Ability to generate genius mixes on the fly
4. More consistency with artwork - artwork doesn't always appear via the standard MINI interface

I say all that to finally state my current issue. I've been having troubles (all in the last 7 days) with the iPod out function working poorly or not at all. The first instance of the problem occurred 4 days ago. I started the car and plugged my phone in. The iPod out function starts up but I'm getting this very distracting flickering in the interface. I tried disconnecting/reconnecting without success. This was strictly a VIDEO symptom. I had no appreciable degradation of audio signal. In an attempt to troubleshoot the issue, I switched out of the iPod out section to see if other parts of the interface are flickering. They were not. All interface elements outside of the iPod out area were functioning normally. In fact, the portions of the interface that immediately border the iPod out portion of the screen were not flickering. When I came back to the car the next morning everything worked normally. I have not seen this symptom again, however since it occurred I've had several times where the iPod out function doesn't work at all. Again, audio works fine but I have no video out--the iPod interface fails to initialize. I can go to the standard MINI iPod interface and it works fine. Also, the other MINI connected features work fine.

Other pertinent info:
MINI connected w/Nav
iPhone 3GS w/ latest version of iOS 4
Interfacing via included Y-cable (don't have the media snap-in adapter)
Roughly 3500 miles on the car
Mid December build date

Based on the symptoms observed, here is my differential diagnosis:
1. Faulty Y-cable
2. Faulty 30-pin connector on phone
3. Faulty video-in jack on car
4. Possible issue with MINI Connected hardware

So far it seems pretty random and I'm having difficulty finding a common pattern or intentionally reproducing the issue.

Has anyone else experienced this? Thoughts?