Last week, Apple released iPhone software 2.0.1 which, unsurprisingly included bug fixes. While the changes weren't exactly striking, iPhone software 2.0.2 is here, delivering higher signals in the 3G network and better performance, according to the various reports and comments from iPhone users all over the web.

Other users, who dropped a few lines over at Apple Discussions, are actually reporting faster browsing and typing (no more lag). You can use iTunes to update or restore iPhone or iPod touch software. Apple, of course, recommends that you update your device to the latest software. You can also restore the software, which puts iPhone or iPod touch back to its factory condition.

Some users, however, are already reporting issues with the new update. One user going by the name of Jespes claims he has installed 2.0.2 only to find that his downloaded apps weren't working anymore: "I installed 2.0.2, and now downloaded apps don't work," he wrote. "When I launch them, they immediately close. That's Annoying. They worked prior to update. All downloaded apps have the prob, including

Remote
NYTimes
Mobile News
Ambience
Box Ofice
Wiki Me
Shazam
City Transit."

Apple notes that, "normally," if a user chooses to update his iPhone / iPod touch software, the settings and media should not be affected. But if the user's device currently has a software version prior to 2.0 (1.x), and wants to update to a more recent version of the software (2.0 or later), all data on that device will be erased in order to perform the install. Your iPhone and/or iPod touch is backed up by iTunes each time you execute one of these actions:

- Sync with iTunes (automatically on the first sync, every time you connect it to the computer)
- Update in iTunes (occurs automatically without prompting)
- Restore in iTunes (prompts you to create a backup before the restore process begins).

Downloaded applications, and other information (Contacts, calendars, notes, images in the Camera Roll), audio, video, and photo content are not included in the backup, although iTunes backs up most of the iPhone / iPod touch settings, Apple says. However, with iPhone 2.0 (or later) and iTunes 7.7 (or later) "in hand", you can manually back up or restore your iPhone or iPod touch from a backup. Just control-click / right-click the iPhone or iPod touch icon on the left side of the iTunes window and choose Back Up, or Restore from Backup.

iPhone software 2.0.2 is available as a free download HERE.