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In short, the "in-line" one has a bit of wire and a control pad, while the Dongle is just a thing that sticks on the bottom of your iPhone.

The Dongle one is probably better if you're gonna shove it in your pocket, while the In-Line one is probably better in a car or somewhere else where you might want a more easily mounted control.

My only objection to both is that there's no dock connector pass-through, so you can't plug in something like power or otherwise hook it up to many accessories that use the dock connector port.
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