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I have had the exact same problem with "bluetooth & S700i" combination. After many retur trips to both Sony and Audi, the problem appears to be the following:

1. not connecting calls
2. poor quality of voice to the other party
3. dropping bluetooth connection.

Upgrade software on the S700i at your local Sony dealer, there is a new software patch available.

This had solved my problems. i also moved the microphone, as the climate contol caused interference, either by interferance from the motor, or from air blowing over the microphone. Anyway, since it was moved, no problems.

good luck
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