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Locked iPhones Can Be Unlocked Without Password
snydeq writes "Private information stored in Apple's iPhone and protected by a lock code can be accessed by anyone with just a few button presses. Pressing the emergency call button at the unlock screen, followed by two taps on the home button, takes you to the iPhone's private 'favorites' page without the need to enter the unlock code, MacRumors user greenmymac has found. If the owner of the phone has favorite entries in their address book containing URLs, e-mail addresses or mobile phone numbers, then those entries can be used to launch the browser, mail application or SMS software, and gain access to private Web favorites, e-mail messages, and text messages stored in the phone, again without entering the unlock code."
There's a way to prevent this - set the Home Button to go to Home when double clicked - this simply drops it back to the PIN request (Or, if it's in iPod mode, bring up the basic iPod controls)
Actually all you need to do is call the iphone, then when the call ends you are back at the home screen unrestricted.
No it does not. It still asks for the code after the call has ended.