Major feature additions include high dynamic range (HDR) photos, Game Center, FaceTime calling from the Phone app’s Favorites tab, uploading full HD videos to MobileMe and YouTube over Wi-Fi, and support for TV shows rented from the iTunes Store.
Major bugs targeted in this release include a misfiring proximity sensor that could cause accidental hangups while on a call, as well as diminished audio quality when using Bluetooth accessories and Nike + iPod fixes. The biggest bug in iOS, however, has been the sluggishness that iPhone 3G users have experienced since upgrading. This update promises to fix those issues, though it’s yet to be seen how much better the performance can be on the older generation hardware.
Apple also patched a number of security holes in the update, including 20 vulnerabilities in the WebKit framework alone.
iOS 4.1 is a free update for the iPhone 4, iPhone 3GS, iPhone 3G, and second-generation iPod touch or later. The update varies in size, depending on your device, and is available now via iTunes when you connect your device to sync.
Let us know how it goes for you in the comments below.