Apple has released iOS 4.1 today for the iPhone 3G, 3GS, 4 as well as the second, third and fourth-generation iPod touch, fixing issues with the proximity sensor and Bluetooth along with adding new features. With the update, iPhone 4 touchscreens should no longer become active when your ear is pressed to the device, and Bluetooth connectivity is improved. There are also speed optimizations for the iPhone 3G, which was a bit bogged down by iOS 4.0.
The release brings high dynamic range (HDR) photo support, which should provide better color and detail accuracy when pictures are taken in bright sunlight. Other features include the ability to upload HD videos to YouTube and MobileMe over Wi-Fi, and you can rent TV shows for $0.99. Gamers might appreciate the new social Game Center, with features including a friends list, multiplayer support, and achievements. Note that updating will 'break' your jailbreak.