Windows users.
Personaly I leaved all php dlls in \php\dlls\ directory, just adding this path to my system path, and iconv.dll supplied with php 4.3.2 works fine, also leaving supplied php_iconv.dll in my \php\extensions\ directory. This was working fine with Apache and Omnihttpd server I use.
As soon I installed IIS on the same server, php complained about not finding php_iconv.dll in the extensions directory. In fact PHP with IIS loads all extensions in my \php\extensions directory correctly, except php_iconv.dll.
Although iconv.dll is in my system path, the only way to load php_iconv.dll was to copy iconv.dll file in \%winnt\system32 directory. With other servers, iconv.dll can be in anywhere in the system path.