Web Talk

The new iPhone firmware 2.0 is available for download right now. Apple has posted a little warning about this update so, before proceeding, read it carefully: ” Normally if you choose to update, the iPhone or iPod touch software is updated but your settings and media are not affected. If your device currently has a software version prior to 2.0 (1.x) and you are updating to software version 2.0 or later, all data on your device will be erased in order to perform install the new software. In this case, iTunes will offer to create a one-time media backup of your device depending on what content is on your device and what content is stored in the iTunes Library you are connected to. You should ensure that you have enough free space on your Mac or PC to accommodate a backup that matches the capacity of your iPhone or iPod touch (4 GB, 8 GB, 16 GB, or 32 GB) if you proceed with the this backup.” You have to install the new firmware update  manually by pressing the Option key when pressing the “Check for Update” button in iTunes. If you want to download the update here is the direct link :iPhone1,2_2.0_5A347_Restore.ipsw (download link)

Source: macrumors.com