Yes, it does play MP3..
However, this is how it works:
1- Set Navigation Destination
2- Remove NAV CD
3- Insert MP3 CD
If you change the NAV DEST. you have to re-insert the NAV DISC.. or just plug an ipod/zune
Then you won't have to change the cd.
It's the cheapest out there..
AVIC-D3 or AVN-5500 (Eclipse - Doesn't support DIVX.)
I just did an install in my 07 si with the Panasonic Strada CN-NVD905U. You can find it deeply discounted from $1800 -> $700.
Note that this is hard drive based so it's faster than DVD and there's no need to swap navi dvd if you want to play mp3 cd. The only downside I notice is the map resolution is not as sharp as the Pioneer unit (I have a AVIC-N1 as well). But on the upside, I find entering address is quicker than Pioneer.
A lot of these units only allow you to play MP3 burned onto a CD only! But most of the install that I've seen have the unit hooked up to the iPod. Panasonic has a cable that will hook up to the video iPod but you need to call tech support to get the firmware update which is available now.
To update you need to copy the .bin file to a SD card and then insert into the SD slot in the unit. Note the SD slot is NOT meant for playing MP3/video,etc - just for map update info and firmware update, etc.
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