iPhone as a Phone
Ring Tones
The iPhone has 25 built in ring tones and you can assign custom ring tones to specific callers. The iPhone displays caller information as per most standard phones. One downside of the iPhone is that you cannot assign your own sounds, tunes and music as custom ring tones.
Address Book
The iPhone uses iTunes to sync the contents of your Mac computers address book (assuming you have a Mac!) with its internal contacts list, prioritising the contacts that you were most recently looking at.
Quick Dial
Another somewhat inexplicable ommission from the first iPhone is a quick dial feature. Perhaps it will appear in later models? Watch this space.
Voicemail
Visual voicemail allows you to navigate around your phone messages with consumate ease, avoiding certain messages, and moving the playhead forward and back to highlight important bits. A useful function.
Bluetooth
The iphone supports Bluetooth wireless headsets
Stereo Headphones
The iPhone does NOT support stereo headphones(!)
Interfacing with your Mac
Your Mac and your iPhone will communicate quite happily, however, it is not possible to drag and drop files to and fro as with most iPods and MP3 players and all Flash Drives. Also, it cannot act as a modem.