My wife uses her iPhone 3GS when she's running to listen to music. She currently uses this one, but has run into some problems. First of all, she uses the stock headphones, and after she started using this arm band, she started getting some really funky behavior from them. Her music would suddenly start fast forwarding, the volume wouldn't work, and other odd stuff.

I took the phone and headset into the Apple store and they decided to replace the headphones. That was about two or three months ago, and the problem has come back. We're reasonably certain it's the armband and/or the mechanism used to wrap up the headphone chord. It's a little plastic thing that you wrap the wire around and pinch into the ends.

She ordered replacement headphones, but not only do they not have those inline controls, the wire is too thick to tuck into that plastic thing you wrap the chord around on the armband. So now the wire just dangles and bounces around when she runs, which isn't very desirable.

Does anyone else have an armband or other solution for running with an iPhone? And no, at the moment a smaller iPod is not very feasible financially. Besides, I think she likes having all her music with her.
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Matt