UPDATE:
I've tested my smart playlist vs. static (i.e. non live updating) and I can report that it now always seems to show the correct name.
In iTunes I left my smart list 'live update' ticked, synched the ipod, then removed the 'live update' tick in the smart list, and re-synched the ipod, so that it thinks that smart updating is not required. This has solved the wrong name for the song playing problem. I can now scroll up and down and it plays the correct song by title when I select the same playlist via iDrive.
I can select different songs either via iDrive on the screen, or the scroll wheel on the steering wheel, both 'upwards' and 'downwards', and it plays the correct song as shown by title, which until today I've never managed to get it to do correctly. The song title changes to the new title after about 3 seconds after the new song starts, when going from one song finishing to the new one starting.
With regard to ipod freezing. My ipod was doing the same, even though it was barely a month old, a couple/few times in the car, but usually after i removed it from the car and when I connected it to my pc to do an iTunes sync. I would end up doing a hard reset. The local Apple store suggested I take it in to be looked at, but before I did this, I let iTunes do an ipod software update (currently I am on 2.0.4) and iTunes v11.0.2.26 and this sorted the problem.
At the moment then, by turning off the live update option, as of today, it seems to be working in the way i'd like it to.
I suggest you do a factory reset on the ipod and then let iTunes update the ipod software if required. I'm sure I did this at least once if not more, just after I first got my ipod about 4 months ago. I haven't had any problems since doing the software update.
Try the links in the following post:
https://discussions.apple.com/thread...art=0&tstart=0