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Taking the battery off of my phone and putting it back , corrected this problem for me. :)
In your Navigatio book it tells you how to reset the location to be more acurate. It worked on mine when I readjusted it.:)
I think it has to do with the way you drive, nothing to do with your lights being on.
You have to use the steering wheel controls to contol the phone while driving. The navigation is also set up not to work while driving, Toyota...
It depends on the phone if features if you are allowed to put in the contacts, individually, or all at once.
I have an LG LX370 and it does notwork, it takes in the contacts, connects, and then disconnects right away.
The smart key should have it on the side of the remote, at least that is where they are on the 2010 model