Shawndoggy - I know I can plug in my Iphone and play Pandora. If I am playing Pandora and my phone rings, it cuts the tunes off and rings through the speakers. I take the call on my Iphone, once I am done, the tunes come back on. It is true that I can not talk "hand free".
However, i believe (according to Cruchfield) you can add "Alpine's optional KCE-300BT Bluetooth® interface, and you'll be able to mute the music, answer an incoming call, or place a call with a touch of a button. You can also stream music from a music phone or Bluetooth capable music player."