An ars technica report reveals that Apple has included an API in the latest iPhone SDK build that allows video output for connection with TV sets.

The feature can be used to divert the video feed to displays / screens other than that of the iPhone. Although the iPhone can already play iTunes content through a TV, "MPTVOutWindow" (the yet undocumented API) can potentially extend the iPhone's functionality handling video-out projects, like slide-shows.

Listed as build 9M2621, the latest version of the iPhone Software Development Kit (SDK) is almost 1.6GB big – considerably larger than previous releases. The release came on the heels of iPhone 2.2, requiring Mac OS X 10.5.5, the latest version of Leopard available. The SDK also runs solely on Intel machines.

By using the iPhone Software Development Kit, developers can produce iPhone and iPod touch-compatible applications, which they can submit to Apple for approval, on the iTunes App Store. To the developers' delight, on October 1, Apple decided to remove the non-disclosure agreement (NDA) for released iPhone software.

The updated iPhone SDK agreement is now posted on the iPhone Dev Center, providing developers with a fresh new start. They can choose to download the SDK (as long as they have an iPhone Developer account – free), and develop apps on their own.

Those with bigger plans (and cash) in mind can enroll in Apple's iPhone Developer Program ($100 a year), which provides a complete and integrated process for developing, debugging, and distributing free, commercial, or in-house applications for iPhone and iPod touch.

The iPhone Dev Program makes the fastest way to get an idea onto handsets worldwide, offering development resources, real-world testing on iPhone, and, ultimately, distribution on the App Store.

An update to the ars technica report also reveals that developers are already working on interactive video-out projects. However, it is unclear when handset owners will actually be able to download one off the App Store.