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To confirm the issue you are reporting is related to the “URL” presented in traditional iPhone alert, right?
It seems the problem you are reporting is specific to alerts generated from files loaded from your local filesystem, e.g., file://null. I have opened a bug report on the null path string. Try this url in the emulator or your iphone to see proper rendering on wifi or 3g networks: http://genuitec.com/mobile/mobione/dev/web/alert.html See attachment alert-screenshot.png
Wayne
Genuitec Mobile Team