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The update is not available, but the buzz has been hugh. Gear Live broke the news and had a slide show which immediately received accusations that the photos were fixed. They subsequently have done a video which should prove the its validity.
The update is beta, at best, as it crashed during the demo.
So far it will include:
Moving home page icons to where ever you want, including the four main icons or pagination to another page. You can still have only 4 icons at the bottom.
Google cell phone triangulation (mentioned here before)
Send SMS to multiple users
Still on my want list: Flash and Java