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Apple released the iPhone firmware update 1.1.1 this afternoon. And a few interesting features comes with this release. First, the iTunes Wi-Fi Music Store is on hell of a great add-on. But a few changes in the interface, like a shortcut to phone favorites of music controls and a shortcut to intelligently insert period and space are really nice to have. No?

But besides fixing bugs, mainly in the Safari browser, Apple tweaked the iPhone to increase the speakerphone and receiver volume. They also added a Bluetooth headset battery status in the status bar, added support for TV out and an off button to turn off Edge when roaming internationally. Check the complete list after the jump.

Gizmodo did preliminary testing with an unlocked iPhone, and it
seems that the upgrade does not brick the iPhone but some activation
problems have emerged.

If you unlocked your iPhone or even jailbreaked the device, my
advice would be to wait at least a day or two before you attemp an
1.1.1 upgrade. Within two days, we should have a clear understanding of
the impacts related to this firmware update.

UPDATE: Apple insider’s Forum members are reporting that hack iPhones
(not unlocked though), have been reverted to the original intended form
and all apps are lost after the upgrade. Other members are  also
reporting that the upgrade erased the Notes and Favorites.

UPDATE: Jonathan Seff of iPhone Central says he can’t use his unlocked iPhone after upgrading to 1.1.1. His iPhone shows an "incorrect SIM" message.

That sounds like a bricked iPhone to me!

Here’s an extract of the iPhone firmware update 1.1.1 release notes:

Firmware upgrades/fixes:

• iTunes Wi-Fi Music Store
• Louder speakerphone and receiver volume
• Home Button double-click shortcut to phone favorites of music controls
• Space bar double-tap shortcut to intelligently insert period and space
• Mail attachments are viewable in portrait and landscape
• Stocks and cities in Stocks and Waether can be re-ordered
• Apple Bluetooth Headset battery status in the Status Bar
• Support for TV Out
• Preference to turn off EDGE/GPRS when roaming internationally
• New Passcode lock time intervals
• Adjustable alert volume

Security notice

WARNING: Apple has discovered that some of the unauthorized
unlocking programs available on the Internet may cause irreparable
damage to the iPhone’s software. IF YOU HAVE MODIFIED YOUR IPHONE’S
SOFTWARE, APPLYING THIS SOFTWARE UPDATE MAY RESULT IN YOUR IPHONE
BECOMING PERMANENTLY INOPERABLE. Making unauthorized modifications to
the software on your iPhone violates the iPhone software license
agreement, and the inability to use your iPhone to unauthorized
software modifications is not covered under your iPhone’s warranty.

Security related updates – Fixed bugs

Bluetooth

• Impact: An attacker within Bluetooth range may be able to
  cause an unexpected application termination or arbitrary code execution

Mail

• Impact: Checking email over untrusted networks may lead to information disclosure via a man-in-the-middle attack
• Impact: Following a telephone ("tel:") link in Mail will dial a phone number without confirmation

Safari

• Impact: Visiting a malicious website may lead to the disclosure of URL contents
• Impact: Visiting a malicious website may lead to unintended dialing or dialing a different number than expected
• Impact: Visiting a malicious website may lead to cross-site scripting
• Impact: Disabling JavaScript does not take effect until Safari is restarted
• Impact: Visiting a malicious website may result in cross-site scripting
• Impact: Visiting a malicious website may result in cross-site scripting
• Impact: JavaScript on websites may access or manipulate the contents of documents served over HTTPS