It is now backtracking from its initial prediction that iTunes 8 won't be a hit in Apple's Let's Rock September 9 event. Not only iTunes 8 will be available then, but they say Apple will also release the iPhone 2.1 update that in theory will fix its huge password security flaw.

Jacqui hints that the 2.1 update will have new secret features that are absent from the beta.

Source- Gizmodo