The result of Step 3 is a fully functional iPhone/iPhone 3G Binder Clip Stand Version 2.0.
I had an orphaned USB Thumb Drive cap in my desk drawer and it fit perfectly over top of the end of the binder clip to provide a large pad for the back of the phone and a bit more stability.
Be Creative! Look around and see if there is something you can re-purpose to make your iPhone Binder Clip Stand more functional or with more style and send me a link of your creation.
If you want more info you can check out my original blog post at: http://www.richandstephsipe.com/wordpress/2008/11/20/iphone-binder-clip-stand-instructions/