With New Zealand customers already being able to buy and activate an iPhone 3G, Apple has released two much awaited upgrades for its fans: the iTunes App Store, currently offering some 500 applications, and Software 2.0 for iPhone and iPod touch users.

The App Store is only available for download after iPhone / iPod touch users upgrade to firmware 2.0, following this link. Surprise! Betcha didn't expect it to be this close to you. You can download and install the new software but do be careful - Apple claims your device will be erased in order to perform the 2.0 install!

Note: iPod touch users are required to pay a $9.99 fee for the upgrade.

From Apple's Support page: "Normally if you choose to update, the iPhone or iPod touch software is updated but your settings and media are not affected. If your device currently has a software version prior to 2.0 (1.x) and you are updating to software version 2.0 or later, all data on your device will be erased in order to perform install the new software. In this case, iTunes will offer to create a one-time media backup of your device depending on what content is on your device and what content is stored in the iTunes Library you are connected to. You should ensure that you have enough free space on your Mac or PC to accommodate a backup that matches the capacity of your iPhone or iPod touch (4 GB, 8 GB, 16 GB, or 32 GB) if you proceed with the this backup."

Apple has decided applications under 10 MB can be downloaded through the App Store over the cellular network. To download pieces of software larger than 10 MB, you will have to get them over Wi-Fi or by syncing to iTunes. Applications are downloaded directly from the new App Store. The App Store is accessible from just about anywhere. You can browse categories, do a keyword search, or take a look at recommendations to download and install applications directly onto your iPhone / iPod touch. The App Store will also notify you whenever updates are available for one or more of your stored apps.

Apple has also released iTunes 7.7 today. It stands as a requirement for syncing your iPhone 2.0 to your computer, so you'd better upgrade this program as well.

See Apple's Support page for more information on how you must update and restore your iPhone / iPod touch software.