The V-Moda Vibe Duo's are what I am looking at getting. They are made specifically for the iPhone, so no extra connectors or trimming of plastic needed, and the newest edition have the integrated controls (just like the ones on the stock iBuds). From what I have read, these headphones sound great and block most external noise. They are $100, so that may be a bit more than you want to spend, but at least these headphones have a mic so you can talk on the phone as well.
I had a pair of the Shure e2c in ear buds and I loved them. I cannot seem to find them anymore, but they were great. The only thing, is any type of in ear canal headphones act like earplugs to block noise. This is in contrast to the "can" type that Bose makes, that emmits a frequency that stops noise. Some people cannot take the earplug feel, so I suggest trying on a pair of plain old earplugs and wearing them in a similar environmnet to where you will be using your iPhone for music. It is a strange feeling at first to hear yourself breath, in super hi-def surround sound!
I hope this helps!