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iPhone Atlas has been crawling around inside the iPhone 2.1 firmware beta and found a few interesting things.

References to turn-by-turn directions functionality has been found.

However, the "new" bit of information that caused our ears to prick up is the appearance of a reference to "iPod2,1." Of course, current iPods are identified by the "iPod1,1" moniker.

We've know for some time that Apple's planning an iPod refresh, likely before the end of this calendar quarter. Most expect only a modest update, that will likely see a tweaking of colors and storage capacity.

[u] However, for its part, iLounge claims that an updated iPod nano return to its original tall form factor and resemble Microsoft's Zune Flash. Say it isn't so...

Meanwhile, Reuters (ITBusinessNet) reports that Dell is testing a new mp3 player and could begin selling it as early as September. The company has already failed once in this market segment, as have dozens of other companies that thought they could unseat Apple and its world-beating iPod.[u]

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