Finally got the WordPress iPhone App working with my Blog. The problem was, if you created a new post from your iPhone using the WordPress App and uploaded a photo with your post, instead of the photo in the post (online) you had HTML code in the post.
Reason? because the opening and closing brackets were missing from the HTML code the photo would not show (see the post WordPress App Photo Error).
The problem is my web server is running PHP 5.2.5 and should be running PHP 5.2.9 with Libxml2 2.7.3 +.
As a quick fix instead of upgrading my PHP, I installed this WordPress plugin – Libxml2 Fix.
So as you can see by the photo below of me (taken from my iPhone and post by the Wordprees App) it’s all working well!