Using an application called BlogWriter that is available on the iTunes App Store I am now able to post to my blog from my iPhone.
Unfortunately there is a bug in the current release of blogsphere that prevents it from working correctly as it makes a call to depreciated blogger API function that is not required when using metaweblog API.
The bug has been identified and will be fixed in the next release of BlogSphere but if you want iPhone posting now then feel free to contact me and I’ll give you the latest version of the code.
Dec's Dom Blog 