I worked on this project for a few months. We ran everything like a typical agile startup with weekly iterations and a lot of testing "MVPs". Really cool project. Also its all going to be opensourced! http://open.nasa.gov/plan/phonesat/
The only exception I can think of is laptops on the ISS and on the space shuttle, but those were within the shielding of the craft. On top of that, those laptops are hardened against radiation. I believe they took off the shelf Lenovo Thinkpads and added some shielding.
To be safe, I imagine they gave the phone a tinfoil hat.