Various news sources are reporting that Version 2.1 (beta 1, build 5F90) of the iPhone OS, as well as a new version of the SDK have been seeded to developers. The OS version includes new Core Location features, suggesting turn-by-turn GPS as a possibility in the near future, cut and paste support and more, according to the reports.

Core Location is said to be able to track your direction and speed, which, needless to point out, would be a sweet addition to the already great GPS function the iPhone 3G currently boasts. But that's not all. According to the folks at Gear Live, a new version of the iPhone SDK has also been seeded to developers, although this release doesn't allow them to submit apps to the App Store.

"We just got word that Apple has released a beta version of iPhone OS 2.1 to developers," the post reads. "Along with the 2.1 firmware, a new version of the iPhone SDK has been seeded as well, but the new SDK can't be used for submitting applications to the App Store at the moment."

Macnn also has a few details regarding iPhone OS 2.1, such as a reference to a "mobile radio" function. According to the site, this "could indicate that Apple hopes to support native Internet radio, instead of through third-party apps." Another source confirmed that, "in exploring the Localizable.strings entry under English.lproj in the current iPhone WebKit framework, there are entries for several commands the firmware does not currently support, including cutting, copying and pasting."

Apple has been long rumored to support cut and paste on its iPhone, but has never managed to decide on what particular touchscreen function to compromise to add this useful function. Hopefully, the company has come up with a solution that doesn't eliminate other touchscreen functions.

Apple is still expected to release a minor (2.0.1) update for iPhone / iPod touch users, fixing some camera shutter bugs, as well as some issues with the accelerometer.