Apple this evening released iPhone Software Update 1.0.1 (1C25, 7.1 MB). Just like Greg Jozwiak promised and just under the deadline set by a group who threatened to release their iPhone vulnerability at the Black Hat conference in Las Vegas.
The update (see gallery) is only available if you connect your iPhone to iTunes and click on the Check for Update button on the summary screen. No information has been published about what, if any, feature enhancements are included in the update. At the present time it appears that it's just a security fix.
Impact: Visiting a malicious website may allow cross-site scripting
Credit to Lawrence Lai, Stan Switzer, and Ed Rowe of Adobe Systems, Inc.
Impact: Viewing a maliciously crafted web page may lead to arbitrary code execution
Credit to Charlie Miller and Jake Honoroff of Independent Security Evaluators
Impact: Visiting a malicious website may allow cross-site requests
Credit to Richard Moore of Westpoint Ltd.
Impact: Look-alike characters in a URL could be used to masquerade a website
Impact: Visiting a maliciously crafted website may lead to an unexpected application termination or arbitrary code execution
Credit to Rhys Kidd of Westnet for reporting this issue.