Following this thread on another site also, i'v got in my IS200 an old grom kit which i use with my itouch and iphone 3gs, i also have a Parrot handsfree kit installed.
When i have the iphone connected to the grom kit the sound quality is as good as cd's, but since the iphone os4 came out it does not work perfectly IE: cant change playlists up n down, but works just fine on itouch?
When the iphone is connected and i get a call, the iphone pauses the track and the parrot takes over, when the call ends the iphone re-starts the track where it left off and away we go, job done. ;)
I'm working on this project at the mo, but the grom cable is not compatible with the apple docking station!!
But this is a short vid of how i have it set up now (but now liking phils placement of iphone)
Hope you like, Martin