Apple has released iPhone OS 3.0 (Build 7A341) just as they had announced at WWDC 2009 Keynote address.

Apple had given us a preview of their generation iPhone OS at a special event in March which has more than 100 new features.

iPhone OS 3.0 is now available via iTunes.

Here are some of the features to look out for in iPhone OS 3.0:

Cut, Copy & Paste: Users
will be able to cut, copy and paste text. The blocks of text could be
selected from application and web by simply taping the content. You can
check this page to find out how it works.

Landscape Mode: iPhone OS 3.0 will allow users to use iPhone's virtual keyboard in landscape mode in mails, messages, notes.

MMS: Users will be able to
send and receive photos, audio, vCard (contact cards), and ‘location'
with the ability to take photos and videos right inside the message.

Apple announced that MMS support
for AT&T will only become available in late summer although a
number of carriers across the globe will support MMS.

Note: MMS is not supported on
first-generation iPhone. Sending video via MMS is not supported on
iPhone 3G, since, the camera can't capture video.

Movies and TV Shows direct download:
Apple announced that with iPhone OS 3.0, users will be able to rent and
download movies, tv shows directly onto their iPhones.

Apple already allows users to
download songs, podcasts and iPhone apps over the air using iPhone’s
data connection if the file size is less than 10 MB, if the file size
is more than 10 MB, users will have to download it over Wi-Fi. Thus, it
is anyone's guess that Apple is indirectly stating that this feature
will only work over Wi-Fi.

Tethering Capability:
iPhone OS 3.0 will also bring the ability to tether the iPhone to feed
a data connection to your computer and surf the internet. However it
will depend on carriers to add tethering support on their networks. 

Tethering is not currently
offered in the U.S. and some other countries. AT&T was absent from
the list of  carriers that allow tethering. Some of the networks
that allow tethering include names such as bharti, Telefonica,
Hutchinson Telecom, Orange, O2, T-Mobile,Vodafone, and Chunghwa
Telecom.

Safari Improvements: Safari on iPhone OS 3.0 is now 3 times faster in iPhone OS 3.0 and will have the autofill username and password feature.

Safari also brings support for HTTP streaming audio and video. It will automatically determine best quality for your connection

Find My iPhone and wipe feature:
iPhone OS 3.0 will include a feature called 'Find my iPhone'. The
service will obtain iPhone's location and make it available to MobileMe
user on request if the unit is lost or stolen.

The users will be able to protect
their privacy by sending remote wipe instructions, which will wipe off
all data from lost or stolen iPhones.

Peer to Peer Connectivity: This will allow users to play multiplayer games and to share information.

In App Purchase: Apple
has introduced a new business model, which adds more ways for the
developers to charge users for an iPhone app. The models are
Subscriptions, charging for additional content or levels.

ScrollMotion who creates ebook apps for the App Store demoed its new iPhone App that will make use of the In-app purchase to download books directly through the iPhone App.

Third-party Accessories:
This feature will allow Accessory manufacturers to create applications
to interface with their hardware accessories through Dock Connector or
Bluetooth.

As an example, Line6 and Planet Waves demoed their app that allows you to control your guitar and Amp using your iPhone.

Push Notification Service:
One of the most anticipated features of iPhone OS 3.0 and Apple's
solution or workaround for the ability to run third party iPhone apps
in the background especially for applications like Instant Messenger,
Facebook etc.

Apart from the above features, iPhone OS 3.0 will also sport the following features:

Video Recording and Editing:
With the iPhone OS 3.0 users will be able to carry out basic video
editing on their iPhone 3G S. The 3-megapixel improved camera and video
recording capability in iPhone 3G S are sure to be a delight.

Note: This feature will not be available to the first generation iPhone and iPhone 3G users.

Spotlight (Universal Search Feature):
Spotlight for iPhone will allow the user to search contacts, emails,
calendars, notes etc. Spotlight for iPhone will now be your new
left-most home screen. You can just start typing in the search box
which will bring up a list of everything that matches your search.
Users will be able to search contacts, messages etc and will also be
able to launch the searched applications.

Voice Memos: Users will be
able to record notes, lectures, interviews, or any audio on the go
using the built-in microphone or using the mic on their headset. Users
will also to share their recorded voice files either as an email or
MMS.

Bluetooth Support: iPhone OS 3.0 will support bluetooth allowing users to use bluetooth stereo headphones and speaker with their iPhone 3G.

Turn By Turn GPS: With
iPhone OS 3.0, users will be able to see third party Turn by Turn GPS
apps for the iPhone. However, developers will need to include their own
maps due to licensing issues. TomTom demoed its turn-by-turn GPS
application for the iPhone with voice navigation, which was pretty cool.

SMS App enhancements: Users will be able to forward and delete multiple text messages and will be able to use the landscape mode.

Parental Controls: With
iPhone OS 3.0 Apple will introduce age-based parental control for
iPhone Apps. This feature will allow users to restrict kids from
accessing certain music, video and app.

Multiple Account log-in: With iPhone OS 3.0 users will be able to create and log in to multiple iTunes account on their iPhones.

Battery Indicator: With the iPhone OS 3.0, the battery indicator, in addition to the current battery bar, will display the remaining battery power in percentage.

Support for Exchange: Mail, iCal, and Address Book now all support Exchange.

Automatic Wi-Fi: Upon connection iPhone will automatically logs you in to a previously joined Wi-Fi hotspot.

Sync Note: Users will now be able to sync their notes on their PCs or Macs.

You Tube Login: Users will have an option to login to their You Tube accounts, save and sync the bookmarks and to rate favorites.

Shake to Shuffle: Shake your iPhone with OS 3.0 and it will shuffle to a different song in your music library.

New Languages: iPhone improves it multi-lingual capabilities by supporting 30 languages and more than 40 keyboard layouts.

iPhone OS 3.0 requires iTunes 8.2 so you will have to first updrade your iTunes to 8.2 to download the latest iPhone OS.

If you have jailbroken and/or unlocked your iPhone then we would recommend you to wait for iPhone Dev Team to release their latest tools. We will keep you posted so stay tuned here at iPhone Hacks.

Folks, if you do not fall in the above category and are planning to
update to the latest firmware, please do let us know how it goes.

Thanks Chris and John for the heads up.

Update 1:

It looks like Apple's servers are getting hammered with upgrade requests, as you can see from reader comments, many of them are facing issues downloading iPhone OS 3.0.

I guess the only option is to either wait or keep trying, I have tried multiple times, I have got network connection timeout and session timeout errors.

We will keep you posted if the situation improves.

Update 2:

I finally got the update so looks like things are getting better, let us know if you folks still hitting an issue downloading the latest OS.