Neutron scattering results on the lattice dynamics and Peierls phase t
ransition of (TaSe4)2I are presented. The room temperature phonon disp
ersion curves reflect the stiffness of the (TaSe4)infinity chains and
the comparatively weak transverse interchain interactions. The respons
e of the [110] polarised TA mode, connected with the Peierls instabili
ty, is found to be weakly temperature-dependent. Correlation lengths a
ssociated with the diverging ''central peak'' are determined and are f
ound to be nearly isotropic. We discuss the significance of these resu
lts from the point of view of electron-phonon theory and stress the im
portance of allowing for the interaction between optic and elastic deg
rees of freedom.