The new Operating Software (OS) came out yesterday, I got it for my iPod Touch, and I love it

   Multitasking                       Folders

    Custom Wallpaper

 Multitasking isn't really available yet, since it just came out, but I've done it with a few apps, it works pretty well. My favorite new feature is folders. I had 10 pages of games and other apps. Now I put all those games in to categories (Arcade, Puzzle, Sports, etc...) and now I only have 2 pages of apps. It's great. You can put up to 12 apps in each folder. I also love that I can have a custom home screen. I have a picture of Link for mine.

According to Apple, there are over 100 new features, but they must be small improvements, because I haven't noticed any other large differences. The new features "featured" at the Apple website are multitasking, folders, unified mail boxes, iBooks, custom playlists, custom wallpaper, gifting apps, improved spell checking, bluetooth keyboard support, and some new camera features (such as 5X digital zoom).

Don't have it yet? Here's how to install:

1. Make sure you are using the LATEST version of iTunes. Connect you iPhone/iPod Touch to the computer. Warning: iOS 4 only works with iPhone 4, iPhone 3GS, and iPhone 3G, as well as second and third generation iPod Touches. Not all features are compatible with all devices. For example, multitasking is available with iPhone 3GS, but not with iPhone 3G.

2.  When iTunes opens, select your iPhone/iPod Touch under Devices in the Source List on the left.

3. In the iDevice Summary pane, click Check for Update. Note: If you do not have the latest version of iTunes (9.2 I believe), you will be asked to update to the latest version for free when you click "Check for updates." If you already have the latest version, iTunes will download the new OS, then transfer it to your iPhone/iPod Touch. Then your iDevice will restart, so don't unplug it until it's done.

The new Operating Software for the iPad comes out this Fall.

UPDATE!!! In case you didn't know, several great games by Electronic Arts and Gameloft are on sale for only 99 Cents each!:

Need For Speed Shift

Need for Speed Undercover

Tiger Woods PGS Tour

Madden NFL 10

FIFA 10

The Game of Life

Sim City

Command and Conquer Red Alert

NBA Live

Battleship

GT Racing: Motor Academy (I bought this when it was $5, oh well :])

Brothers in Arms 2: Global Front

Gangstar: West Coast Hustle

Shrek Kart (I'm debating if I should get this)

N.O.V.A. Near Orbit Vanguard Alliance

Assassin's Creed: Altair's Chronicles

Only at the App Store! Hurry before the massive sale ends!!!

Am I the only one here that has it? Come on, it's pretty cool.

Meh, i pretty much got all the features since months. Jailbreak FTW!

i just wnat this for my iPad 

i might be getting an iPhone 4 soon and sell my nexus one 

is it out already?? omg!!!

damn but I don't have multitasking

I like it, except that it just barely now caught up to what the Android had 6 months ago so it is still kind of behind with the times. Same with the phone specs, the Evo and the upcoming Droid 2 have better specs, though at the cost of the battery life. At least it has that, awesome battery life.

All in all, it's not a bad product, but it's still not the best out there.

this update is a failure, I lost all my songs, they weren't on my pc since I changed recently. The best features won't work on my model, it is slow and glitchy, I hate it

The upcoming Droid X stomps both the Evo, Droid 2 and RAPES the iPhone 4, its beastly.

And luckily it's coming out within a month right about when my contract ends, I'll be grabbing the Droid X for sure.

That is what I meant by the Droid 2, sorry.

Its great, i only have one gripe....it keeps EVERYTHING running in the background if youve opened it. iBooks, settings, any app etc. stays on th emultitask bar unless you manually delete it. Other than that i looooove OS 4.

I love my 3GS but ill probably hold off for a 64gb iphone4 hopefully next summer, couldnt be happier with any of my apple products.

Now i just cant wait for my instant netflix app in august for my iphone and gamecenter!