So, I booted up Xcode, Apple's Integrated Development Environment, and noticed that the latest SDK it could publish to was iOS 4.2, my iPhone's running iOS 5.1! I was running Xcode 3.2 at the time, which was the last version of 3.0; this meant it was useless! It had to be uninstalled as major versions (3 -> 4) aren't issued through updates.
I found a nifty terminal command "sudo /Developer/Library/uninstall-devtools –mode=all" which made the removal of Apple's Developer Tools (including Xcode) quick and clean.
With Xcode uninstalled, I had to get my hands on the latest Xcode which turns out is free to members of the iOS Developer Program, something went right? Wrong! The latest Xcode requires Lion, Apple's latest operating system, which I didn't have installed on my Mac as there were a lot of issues surrounding it upon release. However, I had to buy it if I wanted to start developing.
Now, I have two large downloads running (Xcode and Lion) and an operating system to install. I'll finish off writing this post when I have the new Xcode open.
Done!
MacOSX Lion

SDK Availability

PhoneGap
PhoneGap...is an open-source mobile development framework produced by Nitobi, purchased by Adobe Systems [in 2011]. It enables software programmers to build applications for mobile devices using JavaScript, HTML5 and CSS3, instead of lower-level languages such as Objective-C.Source: http://en.wikipedia.org/wiki/PhoneGap
Using PhoneGap allows me to transfer my web-development skills and deploy an application to mobile devices and the App Store without having to learn Objective-C. Installing it was trivial and can now be worked with by using the Cordova project template within Xcode. See below figure.

Continued in part 2...