iOS 4.1 will be available next week as a free update, and will include:
- Proximity sensor, Bluetooth, and iPhone 3G fixes
- “High Dynamic Range Photos”, which take 3 pictures, one with highlights, shadows, and midranges, and merges them to produce an HDR photo.
- HD video uploads over WiFi
- TV Show Rentals for $.99
- Game Center
iOS 4.2 will give the iPad all the features of 4.0, plus printing and AirPlay. It will be available for free on newer models of the iPhone, iPod Touch, and iPad in November.
Printing is pretty self-explanatory: you can print a document to any printer on a local network. AirPlay is a revamped version of AirTunes, and allows you to stream audio and video over WiFi to your iOS 4.2 device.