Originally Posted by Xcellere
The MAJOR plus in running a USB flash drive instead of your iPhone/iPod as the host of your MP3s is that iPhones/iPods process the audio signal and they do it in analog only. Flash drives on the other hand don't do any of the processing at all. They hand that task over to the unit installed in your car which in turn does it digitally, thus giving a more pristine representation of the original MP3/WAV's quality.
I can confirm that usb is much better than ipod from the experience in my home set-up. I have a yamaha 2700 receiver which has a USB port and a dedicated ipod dock. When playing the same file and switching between the two the USB sounds twice as good. I have one question though, does usb have bitrate limitation to 256 as the CD and DVD drives do?