You chose if you want to hard wire via the USB port or use wireless bluetooth. USB does not require pairing, plug the phone in and it will show up on the AUX screen. To use blue tooth you have to set the phone up to be discovered and go to the pairing screen on the radio and follow the instructions. Once paired, you should be good to go. It will work similar to the USB port, but some of the control function will be different. I think most find bluetooth easier, more reliable. I know my iPOD gets play lists confused when connected via USB but works just fine via Bluetooth. So your mileage may varry.
Dunno about Pandora, if the app can stream to the blue tooth or the dock connector it should work. If not, you can always connect the radio fron pannel analog aux jack to iPhone headset jack.
I have my iPhone paired via bluetooth and have played around with making/receiving calls and streaming the songs stored on my iPhone has worked. I'm just not sure about using apps like Pandora/Last.fm via bluetooth or USB. I guess I'll have to just experiment since I can't really find anything through google on the steps to use so everything is working right when using streaming apps like Pandora.
2012 Laredo X : QTII, 430N nav, true blue pearl
I've read that some folks have successfully streamed iPad and iPhone pandora via BT. USB was tricky, but that was before the May/June time frame and prior to the 430 firmware released about that time. So you have a chance to make it work for you, just can't help with the details.
I have a '12 WK2 with the 730N. I can play any source so far over Bluetooth. I simply paired the phone, go to AUX, select Devices, select the iPhone and then it starts playing whatever music source was last played (Music or Pandora). I have to select what I want to play from the phone. If Music is playing and I want to listen to Pandora I just start Pandora playing and it start to play over the 730N. I can use the steering wheel controls to move fwd back tracks in Music or skip tracks in Pandora.
For a USB connection Pandora works the same but Music must be controlled through the 730N which is a major pain with a 22K music collection accessible (iCloud). So I just listen over Bluetooth. I'd like to find a way to use the USB port to charge but not connect the iPhone. Maybe mono price has a special cable...
You can try using one of those cigar lighter/usb power adapters and plug the phone into it using a standard docking cable (the 12VDC outlet inside the console is always on, the one in the dash is in/off with the ACC). Works with my iPad.
You could also try plugging your phone's AC adapter into the AC outlet (if you have the AC inverter option)
I have an iPhone and the 430N system and I had exactly the same question. What I discovered is that while it is "Technically Possible" to get Pandora to stream through the USB port, it involves so many steps that it is a real PIA. I actually managed to get it to work twice! But for the life of me I can't recall the exact sequence of the roughly 15 steps that I had to go through to get it to work. It is easier to simply use the Bluetooth link which works quite well. For me anyway, the only real value I can see to the USB port in the Arm Rest is to charge my cell phone.
2012 Grand Cherokee, Laredo-X, QTII, 4WD, Black/Gray, 3.6L