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The iPod interface has remained basically unchanged since the first iPod was introduced in October 2001. iPhone breaks that tradition with a new iPod interface design.
A row of five buttons along the bottom of the screen provides quick access to menus that traditional iPods have nested down in the interface. However, there are more iPod options than there is space for buttons, so a "more" button graces the corner — an unusual compromise in iPhone's otherwise well-designed user interface. Think of the four other buttons as shortcuts; you can replace them with your preferred shortcuts (e.g. the "Genres" music list).
Things get interesting when you rotate iPhone 90 degrees to the left or right: iPhone displays an iTunes-style "Cover Flow" view. Flick the album covers along, tap on an album to turn it over and view its tracks. Tap a track to play. Tap it again to flip back to album art.
We always thought of iTunes's Cover Flow as a neat visual trick but not very useful. (We discovered and enjoyed it when it was a beta project, before Apple acquired it and hired its developer.) But in iPhone's direct manipulation interface, Cover Flow feels natural, a good way to browse music.
The usual iPod functions of scrubbing through songs and setting song ratings are available, but not via Cover Flow — you'll have to rotate back to vertical. Song lyrics are not available.
iPhone video support is more limited than the video iPod's. Only certain formats of H.264-encoded video are allowed (see our FAQ for details).
If you convert your own video for watching on portable devices or Apple TV, you may have to re-encode it for iPhone. While all of our iTunes Store purchases played, some video we encoded ourselves was rejected by iTunes even though it works on Apple TV. Still, the videos that did work (most of them) look great.
iPhone plays in fullscreen by default, but just double-tap the video to zoom out to widescreen, or back in to fullscreen. Tap once to bring up video playback controls.