MacRumors has just reported the the iPhone 2.0 software is available, but not yet official. To get it you have to download it manually via this link.
Apple has posted an updated guide about firmware upgrades and warns:
Normally if you choose to update, the iPhone or iPod touch software is updated but your settings and media are not affected. If your device currently has a software version prior to 2.0 (1.x) and you are updating to software version 2.0 or later, all data on your device will be erased in order to perform install the new software. In this case, iTunes will offer to create a one-time media backup of your device depending on what content is on your device and what content is stored in the iTunes Library you are connected to. You should ensure that you have enough free space on your Mac or PC to accommodate a backup that matches the capacity of your iPhone or iPod touch (4 GB, 8 GB, 16 GB, or 32 GB) if you proceed with the this backup.
Also take note to fully sync prior to proceeding. In order to install this firmware, you will have to do it manually by pressing the Option key when pressing the “Check for Update” button in iTunes. Then select the .ipsw file manually. If for some reason your download is a “.zip” file, rename it to “.ipsw” before proceeding.
Micheal Arrington of TechCrunch has successfully updated to the iPhone 2.0 Software (took about 30 mins) and installed Apps. See video below:
To see more demos of iPhone Apps refer to TechCrunch.
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