All Apple tells us about what the update is it’s composed of bug fixes. It doesn't even specify what kind of bug fixes.

While no new features are mentioned in v1.0.2,, the same was true for v1.0.1, which offered some minor enhancements anyway—such as the favorites tab jumping to 50 entries from 20, the ability to BCC yourself in an e-mail, and compatibility with a greater number of audio peripherals. Perhaps the same will be true of the new update.

During the installation process, iTunes validates the software on your iPhone. If it finds any hacks or unauthorized third-party applications that run natively on the iPhone, it – unfortunately - performs a complete restore of the device, returning it to factor defaults before proceeding. Meaning you’ll lose everything and will have to re-install the applications and hacks after the upgrade, and the length of the upgrade goes from a mere couple to several minutes or longer.

Some iPhone users are reporting that hacks and third-party software still run successfully on the iPhone after the installation of update v1.0.2. Once you've re-installed everything, of course.

Update: Some folks who've installed the new update report greatly improved Wi-Fi reception, EDGE performance or cellular phone reception. Others say the video preview of the iPhone's camera is much proved, with a greater a refresh rate offering greater image stability. While we have not noticed a change in the former, the later does seem to be better.

Now if only Apple would enable you to take video with the camera.