I just wanted to update anyone who is interested in iPhone apps for dictation/transcription purposes.
My client and I have been giving PocketDictate a test run this week, and it seems that he is becoming quite addicted to sending me notes, letters, and emails to transcribe.

It's so easy to use, and the sound quality is excellent (as long as the person isn't on a subway or busy coffee shop that is -- yikes!).
If you use this app with a client, ask them to please use the wav format when sending it to you. There's an option for a dct file format, but I'm not sure about that one.
Give it a try -- it's a great way to add extra services to your business and it frees up your client's time as well. Win-win!