Apple has spruced up the operating system (OS) software that runs its iPhone. The upgrade is winning rave reviews - but Vodafone has also warned owners not to let their newfound data powers go to their heads.

iPhone OS 3.0 boosts quality and reliability, speeds the phone’s web browser, and adds key new features such as photo messaging (a.ka. pxt or mms), copy-and-paste, voice controls, much better search, and the ability to “tether” or connect your iPhone to your laptop to use it as a modem.

You also get a nifty new Find My iPhone feature, which utilises the iPhone’s GPS chip to let you locate a missing handset using via any web browser - as long as you belong to Apple's $150 a year MobileMe synching service.

The ability to record or send video is the main feature still missing.

For that, you’ll need to buy the new model coming toward the end of July, the iPhone 3G S (but hitting US streets Friday; read: iPhone 3G S: the verdict is in).

Go crazy, but not too crazy
A rep for Vodafone - for now, the exclusive iPhone channel in New Zealand - confirmed that the telco supports tethering.

However, he had two words or caution on the new-found power.

One, iPhone users need to restart to access the new features (and enable it under network settings).

Two, they need to be aware that when tethered, “data will be used much faster”. In the laptop web browsing environment, you’re going to be sucking down much bigger files, more often, than when surfing mobile-optimised sites on your handset.

That means it’s easier to bust your data cap.

Standard iPhone monthly plans, which come with handset subsidies, range from iPhone $40, which includes 250MB of data to iPhone $130, which includes 500MB.

If you choose to pay full price for your iPhone, you can go on Vodafone’s pre-pay accounts which offer 10MB for $1 a day or 100MB for $10 a month - both of which can be topped up in any combination if you chew through your allowance.

Or, you can go on the heftier 1GB or 3GB broadband data plans, which start from $49.95 or $69.95 a month and offer a second 1GB or 3GB for a generous $10, but put you into punitive 50 cents a megabyte (that is, $500 a gigabyte) territory if you bust your cap a second time.

With tethering now a reality, look for Vodafone to adjust its standard monthly iPhone plans in the near future.

Upgrade yourself
iPhone OS 3.0, which weighs in at a hefty 230MB, was released at 5am New Zealand time today, and is available as a free download from AppStore for the original iPhone or the iPhone 3G, and as a $US9.95 download iPod Touch users.

Click to the iPhone pane in iTunes and select the option to Check For Updates to install the new operating system software.