The iPhone 2.1 Software Update.
The iPhone 2.1 software update contains many bug fixes and improvements. To get it, connect your iPhone to your computer using iTunes 8 and click Check for Update.

Update includes:
  • Decrease in call set-up failures and dropped calls
  • Significantly better battery life for most users
  • Dramatically reduced time to backup to iTunes
  • Improved email reliability, notably fetching email from POP and Exchange accounts
  • Faster installation of 3rd party applications
  • Fixed bugs causing hangs and crashes for users with lots of third party applications

  • Improved performance in text messaging
  • Faster loading and searching of contacts
  • Improved accuracy of the 3G signal strength display
  • Repeat alert up to two additional times for incoming text messages
  • Option to wipe data after ten failed passcode attempts
  • Genius playlist creation
Undocumented features/fixes:
  • You can now pause apps by clicking the icon while it downloads/installs
  • Tripple clicking the microphone button (attached to included headphones) now goes to the previous song
  • New podcasts & videos had "filled" blue bubbles next to them to indicate that they were new, but with 2.1, if you have "half-played" a podcast or video, it will include a half filled blue bubble.
  • Options to load & display earlier text message in a convosation
  • The iPod now shows the album artist and album name underneath the song title
  • New 3G, Edge & GRPS icons

(Edge to be added)
"Genius" playlist creation screenshots:



Automatic Download/Installation Tutorial
iPhone 2G & 3G: http://www.apple.com/iphone/softwareupdate/

Manual Download Links
iPhone 2G: http://appldnld.apple.com.edgesuite....6_Restore.ipsw
iPhone 3G: http://appldnld.apple.com.edgesuite....6_Restore.ipsw