PatrickX,
I find myself taking a lot of pics with the iPhone and here are some things that help me:
1) Try and take pics where there is plenty of diffused lighting. If the light is direct, try and shield the lens with your hand. Always allow the phone a couple of seconds to adjust to the light.
2) To prevent moving around, take a deep breath and hold it. Then rest your elbows against your body to allow the phone to be stationary.
3) If the picture is going to be blurry, try and use “Panning” techniques. E.g. if someone/something is moving, try and move the phone at the same speed—you will be shocked at how good some pictures can turn out this way.
4) Turn off the shutter sound. It always goes off before the picture is taken and whoever is posing for you will think that the picture has been taken and will move. At the very least, it makes people conscious and results in stiff pictures.
5) Snap the picture slightly earlier than you otherwise would because the shutter speed is very slow. This will require some level of predicting what your subject will do but will result in more precisely capturing what you intended to photograph.
6) Say something silly/funny to help people relax, then take a few pics one after the other. This makes for very natural, smiling pictures.
7) Use the picture noise in the camera to your advantage. The camera is crappy and you know it. So, you might as well use the grainy pictures and make them look cool by using different angles and compositions.
Hope these tips help you.
You can find some of my pics here. As you can see, most of the recent ones are taken with an iPhone. I am generally happy with the pics because I know that an iPhone has a very lousy camera. So I try and remember that keep telling myself that I am not trying to capture award winning pictures with it. I am just trying to capture a candid moment with a camera that I happen to have with me. So, I just remember that and disregard whatever people say about picture quality. I find that even a technically inadequate picture carries some ability to bring back memories.
Keep on taking pictures!