My iPod FM Transmitter finally worked with iPhone after I bought the 3.5mm adapter for it. However, it is still not very nice and clean. So from time to time, there is some disturbance you can hear along with your music - this is because of the phone interfering with the FM transmission. It is not completely unusable but it does irritate you from time to time. They say the *official* FM transmitter for iPhone that Apple sells does not have this issue - hmm, well it costs about $40/- which I am not quite prepared to spend yet !