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tkids, I know exactly how you feel! On my 997 TT I had to burn an MP3 CD, now I just upload to my wife's (now mine by hijack) iPod nano!
Why would one use a USB over an iPod or the other way round?
Any advantages over using an iPod over a USB?
I think the one advantage that my wife's Audi TTS has and is the same with the Pana, would be that it lists the Menus, so you don't have to scroll through a ton of songs to find one that you may be looking for as you do with a USB, but now that I think of it, I have not tried folders with the USB!!! I know it didn't work with the CD in the 997, but maybe the PCM will allow multiple folders!?!?