Well I need a new phone and also a new ipod so I thought that I could kill two birds with one stone and buy an apply ipohne however I know very little about this product. Does the iphone work in exactly the same way as a ipod? Can you connect it to steros to play your music through it? Only I teach fitness classes and will need an ipod for the music.
Personally, I would get a separate phone and separate ipod. For one- if you buy a single ipod you could get one with lots of space, more than the iphone can hold. Follow this link and you can click on any of the links on the left of the page to let you know more about that feature. The iPhone is pretty darn cool and has so many features. It has recently been given better applications too. Hope it helps.
and oh- you can easily buy a seperate wire to plug into the red and white holes in the back of your cd player. I have one of these, then you simply change the function of the cd player (I do this on mine by pressing the "function" button) to a function called "analog in", or it might be called "line in"- it depends which wire you choose to buy. Just google ipod to hifi wire or something along those lines.
If you're going to use it for browsing the internet while you're travelling to places, then it'll be useful. But if not you'll be paying a lot for features you just won't use.
You also have to stay with O2 and pay �35 per month for a longish period. Could be better to get a Nokia N95 8Gb which will do all you require and you can increase the memory with micro Sd cards and, the phone will be free on a shortish contract and lower monthly charge.