Outlook tasks CAN sync to your iPhone... I have a solution!
HOWEVER, those who do NOT want to go under contract, or do NOT WANT TO WAIT for this release, I have an excellent solution... Granted, it's only useful on Windows as far as I know, but it definitely works seemlessly.
Here's the run down.. Todo app($10), Toodledo account(free), ToodledoSync(free).
You'll need to buy the "Todo" app from the appstore, as it is the only task app that provides any kind of sync capabilities.. (It's a very well put together app as well.. very iphone friendly with direct links in the tasks to go to a website, or to call someone, etc.)
Next, set up a free account with at http://www.toodledo.com and sync the account in Todo.
Then, go here: http://www.chromadrake.com/ChromaticDragon/software/ToodledoSyncInfo.aspx for the sync software between Toodledo and Outlook. You can set the program to periodically sync Outlook and Toodledo.
In Outlook, you should also disable the security setting in "Tools--> Trust Center--> Programmatic Access" and set the option to "NEVER warn"... Without this, every time ToodledoSync tries to sync you'd get an annoying warning message that a program is trying to access your email.
Well, that's that.... and let me just say "you're welcome" in advance!
Dell M60, Windows XP Pro