We have seen iHandstick before, and I just received my ordered piece from Usbfever. I must confess here upfront that the quality of the material is top notch and beyond my expectations. The built material is super fine plastic. In the box, you will find the PSP controller case and two casings. One casing for the iPhones (2G / 3G / 3GS) and the other for iPod touch 2G. My iPhone 2G fits in just fine, giving a solid grip while gaming.
The controller also has a slot for audio output and gives a louder than normal music while playing games (if you realize while holding the iPhone our fingers actually cover the speakers normally). Gaming is sure fun with this. Here, are the closeups: