Pandora is a free personalized Internet radio service based on the music genome project. It allows you to create custom radio stations that stream to your computer and now to your iPhone or iPod touch. When you log in your stations are available and you can stream music directly to your iPhone, and the iPhone 3G's improved speaker makes it a very capable portable juke box thanks to Pandora. the best part is that it works on Wi-Fi, 3G and even Edge.
Move buffs listen up. If you enjoy seeing movies in the theater you should download Box Office right away. It allows you to easily see what's playing in theaters near you with a tap. You can also read reviews from RottenTomatoes.com and order tickets directly. I just wish they would add movie trailers. Oh well, maybe in the next update.
Another fantastic iPhone application is the free eBay client. After logging in it allows you to search, bid and check auction activity from anywhere you have a 3G or Edge Internet connection. A nice summary screen gives you a count of auctions you're watching, winning and ones that you've won and been outbid on. I can't wait to see where this application goes and I'd like to see real-time auction status so that you can watch auctions count down in real time - without having to reload.