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hard drives (but not flash as found on iphone) if they are strong enough

Unless you have a ridiculously strong magnet, like the ones found in professional degaussers, you're not going to do anything to a hard drive with a magnet.
 
Apple recommends against cases and holsters with magnetic latches for the iPhone 3GS as the magnetic field (even a weak one) can throw off the calibration of the magnetometer. This can result in GPS inaccuracies.

Yes Apple says to keep even the earbuds away because their magnets will throw off the compass. (The compass has nothing to do with GPS, btw.)

They also recommend taking it out of a magnetic case if it's not receiving well:

http://support.apple.com/kb/HT2342

I'm having an issue now with the magnetic compass in my SUV and my 3GS, when I get in my truck which has a magnetic compass, the 3GS compass always requires calibration and prompts me to do the "figure 8" which doesn't take, the phone compass just won't calibrate.

This should be a sticky: Apple says to NOT try calibrating the compass while inside a car. Which makes sense; waving it around just exposes it to random influences. Mount it on the windshield and wait for it to figure things out:

http://support.apple.com/kb/TS2767
 
I had a case with a magnet for my old phone, an LG8700. Everytime the phone would ring, when I would take it out of the holster, somehow, the magnet would cause the call to go directly to voicemail. Darndest thing! Needless to say, once i figured out it was the case causing the problem, it wasn't my case anymore.
 
This should be a sticky: Apple says to NOT try calibrating the compass while inside a car. Which makes sense; waving it around just exposes it to random influences. Mount it on the windshield and wait for it to figure things out:

http://support.apple.com/kb/TS2767

Thanks for the link, this exactly describes my issue. Tried out the solution and the compass calibrated itself in about 3 minutes.
 
Thanks for the link, this exactly describes my issue. Tried out the solution and the compass calibrated itself in about 3 minutes.

Excellent.

Built-in car compasses are calibrated the same way: after a few turns, they figure everything out. In fact, going to a parking lot and driving in a slow circle 3-4 times will usually do it... although everyone watching will think you're nuts :)
 
Funny this was mentioned.

I was using my 3Gs maps in the car today and noticed that when I held it in my left hand next to the steering wheel, it constantly asked me to move my phone in a figure 8 to calibrate the compass. When I moved it away, it worked just fine. I realized that the car speaker on the door was causing the compass to wig out on the 3Gs.
 
I don't see any reason why the original iPhone or the 3G would be harmed or even slightly affected by a magnet, even a strong one.

I think the idea that electronics and magnets don’t mix came from the fact that they could erase floppy discs and cassette tapes. Everything stored on the iPhone is stored in flash memory, which is not affected by magnets.

The iPhone 3Gs might be diffrent though since it has a compass.
 
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