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I know most car salesmen are not that bad! This is just my first experience of buying a new car and every step has been far more complicated than it should have been. Ah well, pretty much buggered now then. The audio works great though the aux input but channel switching is difficult (this is why I went for the aux rather than USB option, I didn't think £50 was worth it just to change track from the steering wheel). I suppose I will have to upgrade to the iPhone 3GS which has voice control. There is always a way. Thanks for your help anyway. It will stop me getting too frustrated and breaking something.
I have an iPhone running OS3 with supports A2DP audio playback through bluethooth devices. I was told by the salesman when I purchased my Fiesta that the car would support audio playback. In the menu you can select bluetooth and then select the phone. The phone thinks it is playing the music through the phone but no music is played. Everything looks OK. Not sure what is going on here really.