There are a few new features in iPhone software/firmware update 1.1.1 that Apple didn't mention.
- You can now change the sound that is played when a new text message is received. Tap "Settings," then "Sounds," then "New Text Message."
- International characters: In Mail or a text message, you can press and hold certain keys (like C, or N) for a menu of corresponding international characters.
- There is now a "Debug console" for Safari, which shows HTML errors when rendering Web pages. Tap "Settings," then "Safari," then "Developer"
- There are new options for Video playback. You can start playing videos where they left off or from the beginning, and you can use closed captioning. Tap "Settings," then "iPod."
[For full coverage of iPhone software/firmware update 1.1.1, see this article]