Grabbed this off of modmyi about 4.0.

-There will be multi-touch gestures OS-wide. (Would make sense for that as the rumored OS for the iTablet is close if not the same as the iPhone)

-“A few new ways” to run applications in the background — multitasking.

-Many graphical and UI changes to make navigating through the OS easier and more efficient. We haven’t had this broken down, but we can only hope for improved notifications, a refreshed homescreen, etc.

-The update will supposedly be available for only the iPhone 3G and 3GS, but will “put them ahead in the smartphone market because it will make them more like full-fledged computers” more than any other phone to date. Everyone is “really excited.”

-The last piece of information is the most vague, but apparently there will be some brand new syncing ability for the contacts and calendar applications.

Cue millions of idiots boohooing because they updated the baseband and then whining interminably on the DevTeam website for the next couple of months until someone finds an exploit.

They keep firing on all cylinders.... power of software.

There's also rumors of a 4G iPhone for Verizon to be announced very soon. Can hardly believe it myself, really, but it does make sense in that Apple's market share in the USA is maybe half of what it could be without the AT&T exclusive. Lots of people don't want or cant' switch to AT&T, and AT&T just has an awful reputation.

And the next questions are: can it be unlocked and jailbroken. If those are important to you, do NOT install the update until you are sure.

Heh no it can't be unlocked or jailbroken, it needs to be released first before the dev team or geohot can crack it, sometimes it takes them quite some time. If you don't know by now not to update to the newest firmware when it comes out when you need it unlocked... well....

Version 4 nowhere in sight but I'm being upgraded to 3.1.3 at the moment.

I hope to god you are factory unlocked and dont need jailbreak if you are updating to 3.1.3 right?

Not using a jailbroken phone, so no problems.

They keep firing on all cylinders.... power of software.

There's also rumors of a 4G iPhone for Verizon to be announced very soon. Can hardly believe it myself, really, but it does make sense in that Apple's market share in the USA is maybe half of what it could be without the AT&T exclusive. Lots of people don't want or cant' switch to AT&T, and AT&T just has an awful reputation.

Verizon is dead so I hear. (have to make separate model phone without a sim) TMobile is the likely candidate.