In simulator mode, my app has an icon with round corners, but on a real iPhone, the corners aren't rounded.
Corners get automatically rounded if you install via MobileInstallation (from iTunes, Xcode or App Store). If you're building the package and installing it into /Applications manually or with cydia/apt, you have to make a rounded icon yourself.
You can find the images used to round the corners and add reflection in /System/Library/Frameworks/UIKit.framework/Other.artwork, the first 3 images are the mask, reflection and shadow. You can extract the .artwork file with this script here
by default the iPhone should round your corners and add a reflection effect. Be sure you have not added the UIPrerenderedIcon key to your Info.plist file. Hope this helps!
Adam
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