Here is my proposal for an Iphone Dock, made out of a 2 by 3 wood stud.
As you can see in the main picture, it handles Iphone 3G or 4.

Steps are pretty simple, and only require basic tools.
I put it into the craftsman challenge to illustrate what my nickname stands for : Scrap is valuable !! This dock did not cost anything except less than an hour of my time, electricity and tools that I had already.

I used a saw, a sanding machine and a drill with three sizes of drill bits.
Let's go through the details.

Step 1: Tools and Materials Needed

You will need
- Drill
- Sanding Machine
- Saw

- 3 drill bits
(3/8, 1/4, 7/64)
- sand paper (!)

- Wood : 2 by 3 stud part

Step 2: Cutting Wood

Take the 2 by 3, whatever its length, and cut it.
I cut an approximate 3 in width, such that I came up with a square based dock.

Step 3: First Dock

Using the drill with the 1/4 bit, make a notch in the wood chunk.
Make sure Iphone fits into it.

Step 4: Hole Through Thickness

Using the 1/4 drill bit, make a hole going through your wood chunk.
The usb side of the ipod/iphone cable should go through it.

Step 5: An Another Back Notch

Using the smallest drill bit (7/64), make a notch underneath the wood dock.
You will be able to squeeze the cable in it, such that the dock can be put flat on a table

Step 6: Final Adjustments

Put your Iphone in, and voila.

I needed adjustments such that the usb plug could go through the dock, make the main notch a bit larger, such that my iphone 3G (thicker than the 4) could fit as well...

For the 30 min it required, i am pretty glad with what I came up with, as I did not want to spend the scandalous money Apple is asking for their slick white dock.