Update: The situation has changed now, see here !!!
As experienced by myself and others, the Phone: Firmware 2.0.X breaks TV composite cable support breaks support of the Ipod and iPhone TV Out Composite cable (used for Europe).
Many users experienced the same and posted it in the iPhone 3G Support Forum:
” Several people have left comments on this board and one over at MacRumors.com saying that they had a cable that had been working with their original iPhones (not 3G) before the 2.0 software update, but then stopped working after the 2.0 update. could it be a software/firmware issue?
The fact that we are seeing some video out capability to the TV, even if just for a minute or so before the iphone stops playing the video, implies to me that it is a firmware or software issue, which could potentially be fixed with the next software update.”
Me too has notified Apple and hope they will offer a fix soonish.
This is what AppleStore told me:
“. The composite cable doesn’t work for the iPhone 3G as the pinout is totally different. Therefor, all cables have to be checked for compatibility by Apple first and then getting redesigned. When the Composite TV cable for the iPhone3G will come we don’t know”
So, only time will tell!