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iPhone Software version 1.0.2 is available by docking your iPhone to your Mac (or PC), selecting the device in iTunes, and then hitting "Check for Update."
The agenda for the latest update? "Bug fixes," according to the release notes.
The update takes about a minute or so, half of which is spent "verifying" the handset's existing iPhone software. Therefore, iPhone owners who've 'hacked' or otherwise modified their software may first need to restore their iPhone software before applying the update.