How to accommodate for the iPhone 4 screen resolution?

Question

According to Apple, the iPhone 4 has a new and better screen resolution:

3.5-inch (diagonal) widescreen Multi-Touch display
960-by-640-pixel res

Answer 1

It sounds like the display will be ok but I'm concerned about the logic in my game. Will touchesBegan positions return points in the new resolution? The screen bounds will be different, these types of things could potentially be problems for me.