Did you ever get the issue with lighttpd resolved? I have been trying to get this to work on my FreeNAS machine using the lighttpd binaries that come with it, but certain cases actually cause the server to crash.
Oddly enough, I see the iPhone-friendly interface in Firefox, but I see the same white/blue tabular interface on my iPhone and in IE. Have you ever run across this?
One more question: I see that there are certain variables that are duplicated between config.xml and index.html – to change the behavior, should both be modified?