hi steven,
iphone
does fit in the dock. in fact, I just tried it w/ my coworker's the other day. You were right, you would have to take off the iphone case/skin. Also, be careful with positioning the iphone on its own in though. if you tilt it a bit upwards, you're gonna end up scratching the section right below the jack (as what i did to my coworker's iphone >.<

The edges of the ipod/phone dock connector is quite sharp.