Apple has released a software update for the iPhone, version 2.2.

Synch your phone, click check for update and follow the on-screen prompts. New features, enhancements and bug fixes include:

OVERVIEW

Enhancements to Maps
Google Street View
Public transit and walking directions
Display address of dropped pins
Share location via email

Decrease in call setup failures and dropped calls

Enhancements to Mail
Resolved isolated issues with scheduled fetching of email
Improved formatting of wide HTML email

Podcasts are now available for download in iTunes application (over Wi-Fi and cellular network)

Improved stability and performance of Safari

Improved sound quality of Visual Voicemail messages

Pressing Home button from any Home screen displays the first Home screen

Preference to turn on/off auto-correction in Keyboard Settings

DETAILS

Google Street View
Street View takes you on a virtual walking tour: Navigate street-level photographs of places you've located in Maps.

Public Transit and Walking Directions
Get walking directions, find public transit schedules, check fares, and estimate your travel time.

Share Location
Tap the Share Location button to send an email that includes a Google Maps URL.

Podcasts
Get access to millions of free podcasts on the iTunes Store via Wi-Fi or your cellular network.

Safari Improvements
A new search-friendly user interface, better performance, and more stability make Safari even easier to use.

Home Screen Shortcut
Take a shortcut from any Home screen back to your first Home screen by pressing the Home button.

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So far pretty nice and it looks like the lag has been fixed. The ability to turn off the auto correct is great - I hated that.

Enjoy, iPhoners!