We knew this update was coming, but did not know all it encompassed.  The list is longer than thought, but should help refine the iPhone experience.  There are a few notable updates such as non-destructive video edits and voice control via bluetooth headset.  See all the updates after the jump.

 

– Improved syncing for music, movies, TV shows, podcasts, and photos
– iTunes U content organization
– Redeem iTunes Gift Cards, codes, and certificates in the App Store
– Display available iTunes account credits in the App Store and iTunes Store
– Save video from Mail and MMS into Camera Roll
– Option to "Save as new clip" when trimming a video on iPhone 3GS
– Better iPhone 3G Wi-Fi performance when Bluetooth is turned on
– Remotely lock iPhone with a passcode via MobileMe
– Use Voice Control on iPhone 3GS with Bluetooth headsets
– Paste phone numbers into the keypad
– Option to use Home button to turn on accessibility features on iPhone 3GS
– Warn when visiting fraudulent websites in Safari (anti-phishing)
– Improved Exchange calendar syncing and invitation handling
– Fixes issue that cause some app icons to display incorrectly

 

You can now download the update via iTunes once you connect your iPhone or iPod Touch.