Well I can hook my iPhone dock into my surround sound via a cable and listen on my home system (well use to, until I bought an AppleTV so now just have it all right there). The dock that came with the iPhone has a jack on it for audio out.
Xbox says the mechanism for accessing music on iPod Touch and iPhone is different than that of iPod.
I resent the signs that I see in stores that say iPod=iPhone. My brand new Kenwood deck did the same thing but I had to switch to a data 500 cable and use it as an external disc changer to get it to work. It uses the different folders in my iPhone as discs in the deck.
I was very dissappointed this week when I opened my Xbox 360 this week. Of coure the first thing I wanted to do was plug up the iPhone and get some tunes. I think Apple and MS need to make this a top integrated compatibility priority. Both pieces of equipment have been released long enough to get patched. I think the CD deck realm needs to get looked into also. There are obviously the same problems (iPhone related) in that field.
For now, I am using my Xbox 360 to access the music stored on my laptop wirelessly through Windows Media Player. It was a little trying to set up b/c my network is a mess, but under normal circumstances it would be very easy to do. Xbox 360 does most of the work. Still, I'd love to just get it right off my iPhone as I charge it and play a game.
I have an Xbox 360 and have been using the Mac and Windows side at home. I know on the Mac there are these programs you can install. So the Xbox can read your shared media and basically stream it over to the Xbox.
I am not sure if the Windows OS has a similar program. But not sure if there would ever be a Similar App that would go on the iphone to allow the same streaming feature or not.
The Programs I use on the Mac for Xbox 360 are Connect360 and Rivet might want to look them up online. Research them. Then see if they make and or might be similar programs for Windows if you use it.
Again iPhone won't really support what your looking for unless some sort of App is made for it.
I know this doesn't help for the 360. But I was able to use the iPhone fine with my Harmon system that hooks my iPod into my car stereo. Even though it wasn't iPhone capable, it fired right up and the controls even work right with it. Kind of surprised me, although I do need to turn it to airplane mode to get rid of the hum you get from the cell transmitting.
"I am not sure if the Windows OS has a similar program. But not sure if there would ever be a Similar App that would go on the iphone to allow the same streaming feature or not."
I love the idea but it would be easier to simply update the software to allow the iphone to interact with the 360. The Windows OS similar program here is Windows Media Player 11. If you insist on using WMP10 and still want to share file with the 360 I suggest searching for Windows Media Connect.
In regards to the spring update 08 response MS has announced no update this spring. The update for iphone support can be delivered at any time. Keep your fingers crossed..