I guess it does. I switch Band to 1 and play my iPod. I have to go back today, because something is a bit off. When I turn on the fan, the iPod pauses.
Other than that, it works great and VERY clean. With the extended cable, you can either sit you iPod in the cupholder or put it in the armrest. I prefer the later. Either way, you're covered. Plus, no drilling..anywhere!