I have just participated in an online chat with the UK apple store as I wanted to know when the deluxe in ear headphones are going to be released (as they have been 'coming soon' for ages). They couldn't give an arrival date but they confirmed that they wouldn't function with the iPhone! I assumed that the guy meant that the microphone on the headphones wouldn't function but he confirmed that the headphones would not function at all (including sound output). Only Apple could produce a pair or new deluxe iPod headphones that don't work with their flagship iPod product (and don't come back at me saying that the iPhone isn't an iPod as it blatently is). Time to find a third party product that will do the job then.