Apple's Newest firmware for the iPhone 2.0.1 is said to fix a few of the bugs from the 2.0 firmware released with the 3G iPhone. App crashes and keyboard lag are a few of the main issues.

Here is a download link for 2.0.1:
http://appldnld.apple.com.edgesuite....8_Restore.ipsw

Use this download if you plan to 'Pwn' your iphone, thereby unlocking and jailbreaking it.

If you prefer to stay locked with AT&T Just upgrade through iTunes.

The latest version of the iPhone Dev Team's 'Pwnage' Tool (2.0.2) will be released soon (hopefully today) and will be able to Jailbreak this latest firmware and Unlock for 1st generation iPhones.

'Pwnage' will be for Mac OS users only, and Ill post a guide as soon as its released and I test it out.

'WinPwn' Should follow soon for Windows users.

There is still no software unlock for the iPhone 3G