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Apple rolled out the new version of its mobile operating system iOS4 on 21-June-2010. Some of the new features introduced in iOS4 are multitasking, unified mailbox and ability to group apps into folders. You can update your iPhone and iPod Touch free of cost from iTunes.
How to Upgrade?
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Install latest version of iTunes (iTunes 9.2)
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Connect your iPod Touch or iPhone to your laptop/computer using USB cable
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Backup your music, photos and other data from your devices
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Hit Upgrade and follow onscreen instructions
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It generally takes less than 30 minutes to upgrade, however be patient and do not remove your device from the laptop/computer if it takes longer than 30 minutes.
List of Compatible Devices
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iPhone 3GS (2009)
- iPod Touch (3rd Generation, 2009)
- iPhone 3G (2008) – multitasking not supported
- iPod Touch (2008) – multitasking not supported
Some of major improvements in iOS4
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Multitasking support for third-party apps*
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Multitasking user interface to quickly move between apps
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Support for audio apps to play in the background
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VoIP apps can receive and maintain calls in the background or when device is asleep
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Apps can monitor location and take action while running in the background
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Alerts and messages can be pushed to apps using push and local notifications
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Apps can complete tasks in the background
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Folders to better organize and access apps
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Home screen Wallpaper*
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Mail improvements
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Unified inbox to view emails from all accounts in one place
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Fast inbox switching to quickly switch between different email accounts
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Threaded messages to view multiple emails from the same conversation
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Attachments can be opened with compatible third-party apps
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Search results can now be filed or deleted
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Option to select size of photo attachments
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Messages in the Outbox can be edited or deleted
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Support for iBooks and iBookstore (available from the App Store)
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Photo and Camera improvements
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5x digital zoom when taking a photo**
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Tap to focus during video recording**
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Ability to sync Faces from iPhoto
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Geo-tagged photos appear on a map in Photos
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Ability to create and edit playlists on device
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Calendar invitations can be sent and accepted wirelessly with supported CalDAV servers
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Searchable SMS/MMS messages**
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Enhanced location privacy
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New Location Services icon in the status bar
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Indication of which apps have requested your location in the last 24 hours
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Location Services can be toggled on or off for individual apps
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Automatic spellcheck
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Support for Bluetooth keyboards*
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Support for iTunes gifting of apps
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Wireless notes syncing with IMAP-based mail accounts
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Persistent WiFi connection to receive push notifications*
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New setting for turning on/off cellular data only**
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Option to display the character count while composing new SMS/MMS**
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Visual Voicemail messages can be kept locally even if they have been deleted from the server**
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Control to lock portrait orientation*
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Audio playback controls for iPod and third-party audio apps*
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Better data protection using the device passcode as an encryption key* (Requires full restore.)
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Support for third-party Mobile Device Management solutions
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Enables wireless distribution of enterprise applications
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Exchange Server 2010 compatibility
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Support for multiple Exchange ActiveSync accounts
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Support for Juniper Junos Pulse and Cisco AnyConnect SSL VPN apps (available from the App Store)
* Requires iPhone 3GS, iPhone 4, and iPod touch 3rd generation.
** Requires iPhone 3G, iPhone 3GS, and iPhone 4. SMS/MMS messaging and Visual Voicemail require support from your wireless carrier.
Source: http://www.apple.com