I do not have a URL for a solution, but I too have considered this issue and have the following thoughts:
Make the most of limited space
On an iPhone, the keyboard takes up a lot of room, so you will have very little real estate for displaying an ordinary auto-complete box.
For this reason I believe you should list your auto-complete options inline. Hopefully, with this method you can display 2-3 options per line.
Don't mess with the focus
Another issue to consider is the focus. If you have used StackOverflow or Delicious on an iPhone you will realise that the changes in focus actually make it very difficult to create a decent auto-complete tool as when the text is altered the zoom and positiono the window is also changed.