Whenever I get an email on my iPhone while I'm in the car the Radio reception drops out for a couple of seconds then restores. Is that normal with a Fiscon Bluetooth on a Bolero?

I have also noticed that even using the iPhone (say opening and app) also causes the radio to drop out.

its normal, the unit is muting because the iphone is playing a sound. Sometimes the sound is not heard because the unit does not mute fast enough meaning the first note of every sound is usually lost. Its the same with my Nokia kit and columbus.