The first step is paying USD$99 for the iPhone developer.
The second step is to download and setup the Xcode 4.0.1 and iOS SDK 4.3.
However I encountered some issues where my friend's mac book wasn't mac OSX 10.6, and I had to get his permission to upgrade his OS.
The environment has been set up and ready to code.
I am now going through some tutorials on making iphone apps. As well as learning Objective-C.