OK guys, here's all the hot poop on the using the iPhone 4 with the 9960.
Cable: By using the the Kenwood KCA-iP301V, you get full fuctionality of the unit. Artwork shows up, page flow works, etc. Works just like my 160GB iPod. *Note: you have to make sure that the iPhone is not connecting as an audio unit (A2DP) or you won't hear anything. You don't have to disconnect the phone part of the Bluetooth, just the audio.
Kenwood - KCA-iP301V
Bluetooth streaming: You have to make sure that the iPhone is connected to using the audio (A2DP) setup. You then use "Bluetooth" as your source. This way gives you play, pause, stop, etc., but no artwork. Basic playback functionality. If you have the steering wheel controls set up (I installed the Metra Axxess ASWC) they will work for changing songs.
Hope this helps you guys.