We listen to the ipod (connected through USB port) all the time while the kids watch movies in the back and listen through the headset. No issues at all! Once you insert the DVD and it starts playing press the "DISC-AUX" button and it will take you to the Ipod menu.I have tried to play an iPod in the front while th kids are watching a dvd in the back with their headset. Not possible.
You can listen to the Radio that is it.
Unless there is a manipulation to do so.