Dock Cradle for iPhone 3G/iPod Touch 2nd Gen with AV out & AC
This dock is simple and useful for older iPod models, but will not work with the new iPhones or the iPod touch.  The instructions actually state that you have to use a separate audio cable (not included) for these devices, which you could, of course, do without a dock and which, of course, you cannot do WITH the dock, because the audio output is blocked when the device is in the cradle.  I would characterize the seller's claims as careless and possible deceptive.  Watch out for this!