In iTunes, while holding the iPhone in portrait mode, tap the middle of the album art. A time-scrubber widget will show up right below the song title, allowing you to jump to a certain point in the current song.
This is really handy for audiobooks and podcasts, but the longer the song/podcast, the less precise the 1-inch scrubber is.
I wonder why they gave up on the scrollwheel?
Update August 2009:
Apple addressed the problem with precision in the scrubber in the iPhone 3.0 system update.
Once you see the scrubber, touch and hold your finger on the scrubber, and move your finger down the screen — the farther away from the scrubber you hold your finger, the slower you will fast-forward or rewind. They also gave a “rewind 30 seconds” button that is niftiness, too. Well done!
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