Got the 2.0 firmware on my 1.0 phone today, works pretty good!
http://www.macrumors.com/2008/07/10/...ailable-early/
For those looking for a nice phone, I would consider buying a used v1 iphone and unlocking it. It's cheap and still a *very* nice phone. I still love mine. Sorry to say though, I will be saying goodbye to it soon....