I would second Dan's suggestion for Flash Catalyst.
However, that's already been mentioned so...If you're looking for
the design elements of the iPhone for prototyping this recent post
has a large collection of elements for different software(Photoshop,
Illustrator, fireworks etc):
Hi Mitchell!
At UNITiD we use Fireworks for iPhone prototyping. My colleague has
built a very easy, open source tool which allows you to easily built
prototypes for iPhone. You can include transitions like swipe, pop,
fade, etc in a second.
Please find a demo and all information and downloads
I'm looking for tools and techniques to build medium-fidelity
prototypes of iPhone applications, ones that support iPhone gestures
like swipes but that can be created and modified more quickly than
full-blown applications developed with the iPhone SDK. If any of you
can tell us about tradeoffs
Hi Mitchell,
It sounds like you want something closer to the real thing, but I
know a number of people have been happy with Keynote since the
transitions are similar to the ones on the iPhone.
If a click-through prototype is acceptable, you may want to read some
entries on my blog:
Here's instructions for building an interactive prototype in
Illustrator and Flash Catalyst.
http://www.creativepro.com/article/mobile-design-how-use-vector-iphone-skin
LiveView lets you broadcast a prototype on your desktop to a
phone for testing touch interactions.