I'm playing on the PS2. If you re-dial the shiek's number, he'll come outside to get a better signal on his phone. Just redial the phone, then go outside on the balconey and wait. If you bring the sniper rifle up, and scope it in, you'll see the shiek come outside below you. Take his ass out!

As for triggering a bomb on the "New Life" (suburb) level, I've never tried it that way. But, now I will. Thanks!