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You lose the FM presets everytime you connect the iPod? Only the SAT presets should be lost so it sounds like something is wrong with your module.
Also, have you tried to restore the iPod using an older version of the firmware?
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300C AWD Cool Vanilla
Protection Group II (side/curtain air bags, air filtering, parksense, self sealing tires)
Luxury Group II (4 heated seats, dimming exterior mirrors with signals, courtesy lamps)
California Walnut Wood Trim
Sunroof, Kenwood DNX8120, Rear Seat DVD VES, iPod integration unit
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