Constant Ipod Shuffle

KDC-BT6482 - purchased and installed by best buy I have had the unit little less than a year, most of which were problem free.  Over the last 2-3 months I started getting iPod usb read errors. Then it quit reading USB altogether and the time on the unit stopped updating when the car was not on. I reset the unit with the button on the front under the faceplate.  Now the problem is every time I plug in my iPhone 4 it starts playing my songs in alphabetical order.  No matter what I do, when I set the raido to "hands off" to control the iPhone with the radio or when I plug in my iPhone, the radio restarts playing my songs in alphabetical order.  (I'm very sick of my song called "A" haha!)  Very frustrating especially when listening to audiobooks - as it keeps loosing my place and it is almost impossible to shuffle through to find my place again using the radios built in controls. Suggestions?