I'm running the latest Banshee from the PPA (banshee-1.9.5 as of this post). Banshee successfully sees and connects to my iPhone, however, when I try to sync music to it, Banshee fails with this error: "The mp3 format is not supported by the device, and no converter was found to cover it"

I have aacplusenc-0.17.5 installed as well as all the gstreamer bad/ugly packages. If found this Banshee bug report:
AAC Files converted to MP3 even though iPod supports AAC

which I suspect may be the problem but I haven't found a work-around.

Sometimes I'm actually able to get Banshee to actually sync the song to the iPhone (randomly) but then it's not available to play in the iPhone's music library. Going into the iTunes folder on the iPhone, I can see the songs in there as mp3 format.

Anyone know or have ideas about how to get Banshee working with the iPhone 4?