I am using GoogleSync and love it. I went from a blackberry to iphone recently and was able to upload all my contacts via my BB and then transfer with ease to my iPhone. Couldn't have gone smoother! Also, I find that the syncing is very seamless between my iPhone and Google calendar. Also, I use Novell at work and forward all appointments automatically to my Google email address. Once there, I can easily add those appointments to my Google calendar, which then syncs with my iPhone. I gave MobileMe a trial, but really didn't see what benefit it added. It's quite expensive and doesn't do anything that you can't do for free or at a very limited cost over Google.
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