The iPhone 3G has been a hit with consumers, but many have complained about data connections, dropped calls, and overall sluggishness.

So in response, Apple rolled out the iPhone 2.1 software update Friday, and it said this latest firmware will fix many bugs as well as add features.

The update is expected to improve the accuracy of the 3G signal strength display, as well as decrease the number of dropped calls. These two issues were a major point of frustration for some users and even led to a lawsuit, although Apple CEO Steve Jobs retorted that the issues only affected "a few percent" of iPhone users.

Some users found that programs downloaded from the App Store would cause the handset to crash. That issue has been addressed, as Apple said the firmware will make installing applications quicker and more reliable.

Users with the updated firmware should have a reduced time backing up the handset before syncing with iTunes. Additionally, contacts and searches should load quicker, and the virtual QWERTY keyboard is supposed to be much more responsive.

E-mail reliability and speed should be greatly enhanced as well, particularly with POP and Exchange accounts. Security has been beefed up as well, as there's now an option to wipe data from the handset after 10 consecutive failed password attempts.

The 231-MB update also brings the new "Genius" playlist feature to the iPhone, which auto-creates a playlist based on which song you choose to play. The Genius feature in the iPhone isn't tied to the iTunes Music Store like the desktop software is, so it only creates playlists from music on the handset.

The easiest way to get the updated firmware is to connect an iPhone to iTunes and synchronize it, but the update for the original can be found on Apple's download site, and the iPhone 3G update can be found on its corresponding update page.