It's been about two weeks since Apple unleashed its 3.0 software update for the iPhone.

Andy Tarnoff has already taken a look at the new iPhone 3GS, but I wasn't far enough into my contract for an upgrade and wasn't all that impressed with the latest incarnation of the popular phone, and decided instead to see how the new software would improve my 8 gig 3G model.

Now that I've had some time to play with the updated software a little bit, here are some quick thoughts ...

First of all, copy-paste is outstanding. It's a long, long overdue addition for the iPhone, considering the Samsung SCH-3500 I had back in 2001 could handle the task. But hey, better late then never. It's especially helpful since AT&T won't provide MMS capability until later this summer, so iPhone users still need to go to a Web site and enter randomly generated passwords to access picture messages. But more on that later.

I'm also a big fan of the expanded search capabilities provided in OS 3.0 with the "Spotlight" feature. I can search my phone, search my e-mails and just … search. I like that; it's simple. Not earth-shattering by any means, but another miniscule addition that really enhances the device.

Some other things that I'm liking so far: Being able to sync "Notes" with Apple Mail is a big plus. I often find myself jotting down short blurbs that get lost in the shuffle. Being able to transfer them to my MacBook is a welcome help … Push notifications (though it tends to drain the battery quickly) … In-app purchasing power … The potential for more advanced applications, including those that use the dock connector.

Now, with the nice stuff out of the way, there are a few things that have me scratching my head.

• I'm a little peeved that MMS wasn't ready to go when the software was released last week. I don't really send a lot of picture messages, but I'd like the option. It'll be here soon enough, though.
• The ability to use landscape-mode to type notes, e-mail and text messages is very nice. Unfortunately, though, it seems like the accelerometer is a little overly-sensitive and tends to flip positions  with the slightest flick of the wrist.
• I'm more than a little peeved, like many U.S. iPhone users, that tethering also wasn't available. Internet access isn't always easy to come by, especially free access, and it would be very, very nice to be able to connect my MacBook to my iPhone when I need to hop online for a few minutes to accomplish something a little to intense for my iPhone. Again, I understand AT&T may need to do some tweaking to its network. It makes sense. My only fear is having to spend an extra arm and a leg to use the feature. Here's to hoping ...
• The update itself downloaded and installed fairly quickly. I was expecting a pretty big rush on the release date, but it was a snap. The problem has come, though, when I'm trying to sync and backup my phone – something I try to do on at least a weekly basis. Over the weekend, it took about two hours to perform a full backup and is still taking at least 30 to 45 minutes. I've tried turning off the encryption feature (another cool little addition), but it doesn't seem to help.
• It's taken me nearly a year to fully get used to the virtual keyboard, but since the update, I'm having some issues with screen sensitivity. I'm hoping this is just my mind playing tricks on me, but its slightly unnerving when a simple text message ends up using several lines because the screen thinks I'm hitting the RETURN key. Of course, my fingers could just be getting fatter, too.
• I've also noticed that my phone tends to freeze and lock a lot more than it used to and is getting a little more sluggish. I tried doing a full factory reset and installing from my saved backups, but that doesn't seem to do much good.

In all, I think the update is another step toward turning a great device into an incredible device. I toyed with the idea of shifting to the Palm Pre, but in my limited experience, it doesn't come close to replicating the feeling of having a portable computer in my pocket.

Even with its flaws, nothing really comes close to the iPhone.

Word on the street is Apple is already working on an update to the update. It released the 3.1 version of the software to developers this week, and the rumor mill is churning out notes suggesting some of these bugs will be addressed.

Let's hear from you, fellow iPhone users. Did you upgrade to the new phone, or are you sticking with the updated software? Use the Talkback feature below to share your experiences.