As far as I've been able to tell, whenever you override an audio route in the iPhone, you have to change both the output AND input routes together. The only available routes I'm aware of are:
"Headset" "Headphone" "Speaker" "SpeakerAndMicrophone" "HeadphonesAndMicrophone" "HeadsetInOut" "ReceiverAndMicrophone" "Lineout"
Is there any way to record from the line input/headset in and play through the speaker?