Now that the iTunes App Store is open many people want to know where the 'native' version of 1Password for iPhone/iPod touch is. Well, I'm proud to say that not only do we have one in the works but it is almost ready and it looks GORGEOUS too!
Roustem and Dan have been burning the midnight oil for the last month making 1Password for iPhone amazing and we just submitted it to the App Store. Once Apple approves our submission 1Password will be added to the App Store. We don't know how long approval will take but likely by this time next week you should be able to find 1Password there and install it.
Below is a sneak peek at how to use 1Password for iPhone/iPod touch so you are ready to use it when it becomes available.
Installing
1Password for iPhone/iPod touch can only be installed directly from the App Store. We are currently awaiting approval from Apple; once completed you will be able to download and install 1Password directly from the App Store.
Setup
When you start 1Password on the iPhone/iPod touch for the first time, you will be presented with a Welcome Screen that asks you to setup an Unlock Code as well as a Master Password.

Unlike the Mac version of 1Password, the iPhone/iPod touch application will be constantly closed and opened throughout the day. Not only is the device turned off frequently (i.e. placed in your pocket) but only one application can run at a time so 1Password will be constantly closed and opened as you multitask.
Because of this unique usage pattern we did not want to require a Master Password every time 1Password was opened. Since you will often be accessing "less important" login details like Forum logins, Digg accounts, etc, we use an Access Code to open 1Password. The Access Code is a 4 digit number that allows you to quickly open 1Password without entering your full Master Password. Since the Access Code is short and only contains digits it can be entered very quickly, but as a consequence items protected only by the Access Code are not as secure.
For items that require a higher level of security, such as bank accounts, a real password is needed to keep your data safe and secure. These types of accounts are used less frequently so requiring a full password to be typed when using them will not be a burden.
You can configure each item in 1Password to be protected by your Master Password. In 1Password for Mac this is called a Security Level.
Adding Data
Once your Access Code and Master Password are setup, you will be taken to the Logins screen:

Since no logins have been added yet you will see the welcome screen above. You can tap the + button to add a new login:

At the bottom of the Details View you can elect to protect the item by the Master Password:

Items protected by your Password will be encrypted with a different key and will require you to type your Password to view their details.
Syncing With 1Password on Mac
Users of 1Password for Mac will want to keep their iPhone/iPod touch data in sync with their Mac. To start the sync process, tap on the Sync icon to bring up the Sync screen.
The local network will be searched for any running 1Password applications. If none are found you will be presented with the Search screen as 1Password continues to search:

To sync with your Mac, start 1Password on your Mac and then open the iPhone Sync window by selecting Sync > Sync to iPhone... menu item:

This will bring up the iPhone Sync Window:

This window allows you to add new devices to sync with. To add a new device, you need to ensure the 'Enable secure Wi-Fi syncing' and 'Allow new Sync Requests' checkboxes are both enabled. Now go back to your iPhone/iPod touch and you will see your Mac listed on the Sync screen:

If you have more than one Mac then you will be able to select it from the list:

Tap on your Mac in the listing to bring up the detailed sync window:

Notice how this Mac has never synced with this iPhone/iPod touch yet. Given that there could be many Macs and iPhone/iPod touchs on your network, by default each device needs to assume it cannot trust any of them.
Before any two devices can sync, they need to perform a secure handshake to establish trust between each other. Tapping Request Sync on the iPhone/iPod touch will initiate the process. The iPhone/iPod touch will generate a random number that you will need to enter on the Mac to verify it is indeed your device requesting a connection:

Entering this number on the Mac will complete the authorization process. This process only needs to be done once for each pair of devices. This is accomplished by generating a unique set of public/private keys for each device and sending one to the Mac to be used in the future to verify the identity of the iPod. The public key of each device is stored in the default login keychain on the Mac.
Once authorized, the status in the Sync Details window will change to Authenticated:

You are now able to start the sync by tapping the Sync button. The sync is a true sync and will send and receive all the data required to sync the Mac and iPod:

Once completed, you will have an exact replica of your Mac's data.
Using Logins
Once you added your data, you can use the Logins view to see all your Logins:

Note that the titles and domains of each item are visible with just the Access Code. The Master Password is only needed when viewing the details of a protected item:

You can only view the details of the protected item once the correct password is entered:

Clicking the arrow beside the web address will open the site in a browser and automatically enter your login details:

Existing 1Password Bookmark for iPhone
1Password has enabled you to access your 1Password data on the iPhone for a few months now by syncing to a Safari bookmark and then using the 1Password bookmarks to view your data as well as login to web sites.
Both of these bookmarks will be replaced by this new native iPhone/iPod touch application. The native application is faster than the bookmarks and a lot more robust as well. The original bookmark application becomes unstable with large datasets, and in fact is crashing much more often on the newest iPhone/iPod touch firmware.
Once 1Password is available in the App Store the Sync to iPhone Safari Bookmark feature will be removed from the Mac version of 1Password.
What About X, Y, and Z?
This is the first release of 1Password for iPhone. While we're very proud of this release, there are some features missing. Things like Wallet items, Identities, Password History, Folders, Search, etc, etc, etc are all on our list for improvements.
The Syncing portion of 1Password was the hardest nut to crack and Roustem nailed it in this release. Once Roustem and Dan get some rest, they will continue their heroic efforts and try to get these features into version 1.1.
Oh, and as cool as I think the UI is, Dan assures me it is no where near as cool as his vision for 1Password. As a developer I guess I just don't see what the fuss is about, but Dan swears he will make it better :)
Pricing
For a limited time we have decided to give away the iPhone/iPod touch of 1Password for FREE!!
We know we could have charged a lot for the iPhone version of 1Password, but we also know 1Password is needed by every Mac user and we are trying to remove as many barriers as possible to make this happen.
The only catch is we need you to help spread the word about 1Password. We don't advertise much and rely on customers like you to help spread the word so please post your reviews on Version Tracker, iUseThis, and MacUpdate. Of course, telling your friends and family is important too!