As the iPhone's reception problems exploded into a major controversy, Steve Jobs was trying to enjoy a vacation on Hawaii's Big Island with his family, according to a spy who says he saw the Apple CEO at Kona Village Resort.

The tipster was having lunch at Kona Village, and is certain that Jobs and his family sat at an adjoining table. The Jobses were described as relaxed and laid back. What's more, says the source, Jobs was describing to his kids the positive, medicinal uses of LSD. It's a timely subject, since medical LSD use is the subject of a big feature in the new issue of Vanity Fair. And Jobs is no stranger to the hallucinogen. In fact he once called his LSD use "one of the two or three most important things I have done in my life," according to Fortune.

It gets better. The source also tells us that Bill Gates and his family stayed at the same hotel as Jobs the same week. This wasn't at Kona Village, but at the Mauna Kea Beach Hotel, according to the tipster, who explains that a friend was among those servicing Gates and his family at the hotel. That's not implausible; Gates has significant ties to Hawaii. Ten years ago the Microsoft co-founder bought a big chunk of a major Hawaiian landowner, and before that was married on the island of Lanai. If Gates and Jobs did meet up—our source thought it was plausible—what could the pair have discussed? How to handle bad press, maybe.

Who knows if the story is true; we were unsuccessful in our attempts to confirm it with Jobs. But the idea of Jobs kicking back in Hawaii and talking about LSD is certainly an entertaining one. If you happen to know anything—or you've seen Jobs somewhere other than Hawaii in the last week or two—do email us. In any case, odds are that Jobs' vacation, if he took one, is now over: Apple has a big iPhone-related press conference scheduled tomorrow.

Update, July 16: Jobs confirmed at the press conference he has been on vacation in Hawaii.

[Photo of Kona Village by Robert Occhialini/Flickr. Photo of Jobs via Getty Images.]