How does the touchscreen work? Does it work with gloves? a stylus?

The iPhone touchscreen is a grid capacitance sensor (like the Trackpads used in Apple's laptops). It is triggered by a conductive point(s) on or very near its surface, such as fingertips. It may or may not work through gloves; experience with Apple Trackpads would imply that only the thinest of cotton or silk gloves might work.

A PDA stylus is unlikely to work (most styli are non-conductive plastic). More.

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