Certain iPhone models support a Bluetooth profile called A2DP. Bluetooth is the general group of services and within that there are supported profiles. Most phones support headset profiles, while only some support file transfer profiles. This is why Bluetooth overall is a mixed bag because the same level of services is not available across all devices.
With the advent of iPhone OS 3.0 the devices supported A2DP where possible. I don't think the original 2G iPhone supports it, but I believe the iPhone 3G and 3GS do. I've read some articles stating support on the iPhone 3G is sub-par. If your phone supports Bluetooth/A2DP, then you also need a head unit that supports it as well. You'd have to check your owner's manual for specifics.
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