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To get the Mk3 working again, you need to insert a good OS disc.
The OS disc needs to be burnt in Mode 2.
As Mode 2 has less error correction, you must burn the disc at the slowest speed possible.
I had the same problem with my Mk3, where it stopped during a software load. No more IBus communicaiton, no more red LED flashing. I managed to eject the bad OS CD, then switched the power off, switched on again (reset) and inserted a known good OS CD. My Mk3 then was able to read the new CD, and load the new SW, and start up.
Because the Mk3 stops and has no more IBus communication, the rest of the car cannot talk to the Mk3, so the car thinks no nav is fitted.
Try restoring your Mk3 this way.
Regards, Jochen
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