Greg Joswiak, Apple’s vice president of iPhone and iPod marketing, takes the stage to kick things off. “We’re going to give you a preview of iPhone OS.” His chart shows how iPhone sales are still climbing.

Joswiak announces 800 million app downloads in 8 months.

Scott Forstall, the head of iPhone software development, announces the “In-App Purchase” program that allows developers to do such things as sell game levels within games or renew subscriptions within the app.

Forstall announces that The Maps, developed by Apple and Google, will allow developers to place maps in their applications.

Core Location, the GPS technology, will allow developers to utilize turn-by-turn directions. But there’s a catch. Due to licensing restrictions, developers will need to create their own maps.

Forstall admits that Apple was caught off guard by the growth of iPhone apps so is late on rolling out a Push Notification system.

Forstall says more than 1,000 APIs will be available to developers with iPhone 3.0 – some include in-app e-mail, iPod library access, and playing music in an app directly from your library.

EA’s Travis Boatman shows off how the new SDK allows you to use “simoleans” to buy a stereo so you can listen to your iPod library while playing The Sims 3 for iPhone.

ESPN’s Oke Okaro shows how the new SDK will let ESPN deliver better notifications of scores or news.

ESPN delivers over 50 million alerts a month.

Anita Mathew of Johnson and Johnson shows off LifeScan which uses the iPhone to remotely monitor information from a blood sugar reader.

What we’ve all been waiting for…cut, copy and paste will work across all applications.

There’s a new voice memo application from Apple.

Apple hasn’t forgotten search. Using Spotlight technology from Mac OSX a search bar will appear when you flick on the left. Add the search term and you can go right to the contact or application. It should be faster than scrolling through dozens of applications.

New features added to the iPhone.