The custom image is not created properly for Signature Pro ver 3.1 on iPhones with OS 4.0 or higher. We have resolved this and submitted an update to Apple. It should be available for download in about a week.
There is an issue with the latest update to Signature Lite version 3.1 as of 27 August 2010. The copy to clipboard feature does not work some iPhones in particular 4.0.
An update has been submitted to Apple to address this issue. We expect it to be release in about a week.
Symptom, when inserting a signature to a reply email on the iPad, the Apple Mail application opens a brand new email instead of inserting into the existing email.
Unfortunately, we have no control over the difference in behavior on the iPhone and the iPad, since this is how the Apple Mail app responds on each platform.
We have put in a bug request to Apple and hope to hear a positive response to the problem.
We are also investigating other ways to workaround the issue if they decide not to fix the bug.
Recently Facebook changed the way anyone accessing public pages on Facebook via their iPhone. Anyone trying to access a public profile page with a claimed name is prompted with a login page. Apparently, they require you to login before accessing these pages. However, while the url they create suggests that they take you to the page you requested after logging in, they do not do so.
*** Bug fix included in next release ***
Some browsers will put a blue border around images. We have submitted a fix for this and it will be available automatically in the next update.
We have found an problem with image URLs that have spaces in the URL. This may cause the Mail Application to crash on iPhones running 3.0 or later. It appears that any image url in html sent to the Mail app will cause it to crash. (spaces in other html like anchors etc. does not appear to have the same issue).
Solution or Workaround is:
a) When naming your images, make sure you do not put spaces eg. "my picture.jpg" should be "mypicture.jpg", "my_picture.jpg" or "my-picture.jpg" when you upload your picture to the website that is hosting your image.

Today our update Signature application was approved for download by Apple. The update includes some fixes for iPhone 3.0 compatibility.
We took the opportunity to add functionality to support Facebook and LinkedIn users who have user-defined names as part of their URLs instead of just numeric ids.
Join hundreds of satisfied users, visit our Signature page for more details
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Made some minor tweaks to make TheGoodBlogs Explorer compatible with the new iPhone 3.0 OS. Otherwise it is still the same great app the makes discovering new blogs fun!
Visit us at http://www.ideasunplugged.com/thegoodblogs for more details.
*** Update: this issue has been resolved in latest release ***
We have found an incompatibility running Signature under iPhone OS 3.0. If you have upgraded to OS 3.0, pressing Test Hot Link in the Edit Hot Link view may cause the application to quit. We have submitted a fix and waiting for Apple approval.