When Apple released its iPhone 2.0 software earlier last month, CEO Steve Jobs said it would provide the most advanced software platform and the best user experience for a mobile gadget device. However, glitches in the software are leaving users frustrated, with a laundry list of complaints.

Apple introduced its App Store just before it released the iPhone 3G, which uses the 2.0 software. Users of both the first-generation iPhone and the iPhone 3G upgraded with the 2.0 software can buy and download apps created by third-party developers.

The update is also expected to include an improvement to the GPS feature that currently reports a user’s location. Reportedly, the new version will add direction and velocity that could be the start of turn-by-turn guidance.

The iPhone 2.0 software was also supposed to permit subscribers to Apple’s $99-a-year MobileMe service (formerly called .Mac) to seamlessly share e-mail, contacts and calendars between iPhones, Macs and PCs. It was billed as compatible with Microsoft Exchange e-mail servers.

In fact, users are reporting crashes, unexpected reboots, and slow synchronizations with both the iPhone software and downloaded applications. Moreover, some users have reported sync times of 30 minutes, plus problems with Bluetooth and GPS. Other problems have been screen freezes, dropped applications, and long iTunes backup times.

Users have found some relief in removing and then again downloading applications. However, this is only a temporary fix because the deleted apps return on the next sync. A more reliable fix has been to update the iPhone directly through the App Store or from iTunes instead of through the iPhone.

Relief could be on the way as Apple distributes an iPhone 2.1 software update to developers. That version may include fixes for the reported bugs, though some observers are speculating there could be a special 2.01 update.

Apple said 10 million apps were downloaded in the first weekend for the App Store. According to Timothy Cook, Chief Financial Officer of Apple, analysts that one million iPhone 3Gs were sold in three days after the July 11 launch, compared to 74 days to sell one million of the first-generation iPhones.

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