Basically this new version has faster internet, GPS navigation and ability to download(buy) applications such as games.

The Phone will cost $199 for 8GB $299 for 16GB. Then you will have to buy a voice plan for at least $39.99/month along with a Data plan for $30/month for unlimited web surfing, then a text messaging plan for $5-$15/month.

Expect to pay $80+/month for the full service plan. I would expect AT&T will let you drop the data plan and just use this as a sweet touch screen phone.

The phone has a very smooth UI which is fun to use, but lacks some basic features that might be very important for some. For example, it doesn’t have picture messaging which is very important for some people but not for others. There might be an application that someone will create to accomplish this, but you will likely have to pay for it.

Take a look at the links above, there is a great deal of information out there. I will likely buy the 3G iPhone when it comes out, but might wait to see if there are some applications to buy that will fill in the missing pieces first.

Good luck with your decision.