- 3 Megapixel camera with Auto focus, auto white balance, better low light performance, and macro.
- Support for Video recording, video trimming / minimal editing, and sharing with Youtube and other services.
- Much faster processor
- Voice control, voice dialing, and iPod control
- improved Accessibility
- Digital compass chip
- Improved battery life
The new phone will be available in a 16gb version for $199 and in a 32gb version for $299. They are also keeping the 2nd gen 3G around for $99 (not sure if that is the 8gb or the 16gb version).
Update: Check out the Apple Store for more info.