That is correct, the new one will not need a special cable.
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I was able to modify my old cable by shaving the end to fit.
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The iPhone is much easier to use on the bike than the iPod was. Easier to read and easier to change songs (although not while riding)

 

If you don't need the G3, GPS and 16GB, you should be able to get a great deal on a 1st gen model. Check ebay near the end of the month. I'll be you can find used ones for $100 or less.

 

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But what about "He who dies with the most toys.............."???????

 

If you use the Iphone with earbuds that have the clicker. I found putting the Iphone on pause for too long will shut it down and you will need to access the phone to start the music again. Other than that it works awesome!

 

I've used my iPhone and it's far more convenient. Biggest downfall, the touch screen makes it difficult to change tracks. Even more of a pain if you wear gloves.

 

I have the first gen iPhone and love it.&nbsp\\; If the second is like the first you will have to use the headphone jack instead of the adapters they have for iPods that plug into the base of the phone.&nbsp\\; If you don't, you will get feedback whenever the phone automatically checks for email.&nbsp\\; While cheaper up front the second gen will end up costing more over the two year contract due to AT&amp\\;T charging $10 more per month for the plan.&nbsp\\; The first gen doesn't have true GPS but they do have a system that gets a approx. location based upon tianglation from cell phone towers.&nbsp\\;

 

I have an alpine head unit and i connected both of my ipods to it (for testing purposes), one is a 80g and one a 30g... the new 80g i havent had any problems from, the 30g seems to lock up every now and then, i have to reset it...

i also have connected an iphone, works fine, just have to put it in airplane mode...

 

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True, airplane mode works to stop the interference but then it disables the phone