Among the problems fixed are dropped call issues as well as crashes which could occur when the user had numerous applications installed on the handset. The company has also improved the speed of text messaging and the search and loading of contacts.
The new features include support for Apple's new iTunes "Genius" playlist feature and improved battery life. The company also added the option to repeat text message alerts, as well as the ability to wipe all data if ten consecutive failed passcode attempts are made.
Users had been hoping that the update would fix the much maligned 3G connection on the iPhone. While Apple did address the issue with the update, it was only to fix the accuracy of the 3G signal strength display, not to boost the function itself.
Among the six security fixes in the update include a patch for the famed Dan Kaminsky DNS flaw as well as a fix for the emergency call workaround disclosed last month. Other patches include tighter restrictions on interactions between applications and vulnerabilities in the phone's TCP components.
The company also posted a fix for an issue in the Windows Vista version of iTunes which was causing a blue screen of death to appear when an iPhone or iPod was plugged into a PC. Apple is advising users to uninstall both iTunes and the Apple Mobile Device Support tool and then download the updated versions from its web site.