Can the iPhone receive stuff that's going on with the iPod that its connected to ? So if someone has the ipohone, will if someone uses the iPod, the person with the iPhone see this ?

Nope as the iPod does NOT have any sort of streaming software on it.

Thanks curly - but can the person with the iPhone pick up what's going on with the iPod if its being used, Facebook, emails etc ?

Thanks curly b x

You'd probably have to jailbreak the iPhone and install some sort of 3rd part app that allows you to remote into other devices. That would probably be huge pain as the iPod would not like remote connections to it.. They would probably both have to be jailbroken for this to be accomplished