An anonymous tipster sent us a short video showing new capabilities of the iPhone 2.0 software.
It's a little hard to see around his building's attractive fluorescent lighting, but hopefully you get the gist.
It appears that videos will be easily playable in portrait or landscape orientations, using data from the iPhone's accelerometer. (Though it's been possible to play embedded QuickTime videos through Safari in the vertical orientation since firmware version 1.1.1.)
Also, mercifully, it looks like video playlists are in our future.
Update: The video has been updated with a far less glarey version. Thanks, anonymous tipster friend!