Yes, the sync works with all Kindle versions and with wireless (I don't have a cell plan on my iPhone). You can also run the app on your iPod Touch.
I've posted a quick overview of the limitations of the Kindle Iphone App
on my blog:
http://booksontheknob.blogspot.com/2...es-iphone.html
Along with pictures of all three Kindle devices, open to the same book:
http://booksontheknob.blogspot.com/2...-pictures.html
Karen
http://booksontheknob.blogspot.com