You can now download and install Apple's latest firmware update, 2.1, for the iPhone. To do so, install iTunes 8 on your computer and then select Check for Update after plugging in your iPhone. The major upgrade includes a host of enhancements and bug fixes.

Here's the comprehensive list of what your iPhone is in store for from Apple:

 

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

See here to learn more about the firmware upgrade and how to install it.