The iPhone 1.1.1 has much more than meets the eye (the eye being Apple's included release notes). It has better H.264 video support, the ability to play MP3/AAC/WAV audio email attachments, text message sounds, international characters, new video playback options, and a debug mode.
Mail port settings You can now set a custom port for mail servers directly on the iPhone by going to the Mail pane under "Settings," and selecting your account. Previously you had to set this variable on your Desktop then re-sync the system in order to set a mail port.
Japanese Input Keyboard Though the iPhone doesn't sport the same ability to select different language keyboards from within the Settings application or switch between international keyboards like the iPod touch, the 1.1.1 update allows the iPhone to bring up certain International keyboard sets automatically when navigating to a Web page encoded in that language.
For instance, iPhone Atlas reader Harry writes:
"There is also a new feature of a 'Japanese Input Keyboard' which currently only shows up when navigating to a Japanese web-page, to a field supporting or requiring Japanese input. This appears to be part of the code shared with the iPod Touch, which supports far more non-roman languages and localizations than iPhone overtly does. I suspect the same could be true (haven't tested it yet) with Chinese, or other supported non-roman alphabets."