Today Apple announced the release of the iPhone OS 3.1 with genius app functionality plus ringtones for $1.29.  We’ll add more to the story as it develops.
Update 09/09/09 2:25p ET – iPhone OS 3.1 includes the following…

AT&T released a video following their written statement about MMS coming to the iphone on Sept 25th.  The video stars “Seth the Blogger Guy” who goes into detail about why AT&T dropped the ball to get MMS working with the rest of the world.

Today AT&T announced on their website that they will be enabling MMS support for all 3G and 3GS iPhones as of September 25, 2009.  This comes as no surprise that all first generation iphones will not have this ability.