When I had heard Apple say the 3G would have improved audio, being an audiophile, I assumed they meant for audio/music playback and that really appealed to me as I do use my iphone as a source for my pretty decent stereo. But, I now wonder if they meant better audio with regard to phone usage. I do notice that the audio on phone use is better, and frankly, I don't hear much difference whether I'm using 3G or Edge, but as for music playback audio quality, I do hear a difference, but not one I think is good. My gen 1 Iphone sounded very good, very neutral when the EQ was off. In fact, sometimes depending on the music, I'd even use the Rock EQ setting, which surprisingly sounded pretty good too. But, the new 3G sound seems much more in your face, with more glare, it's a harder, harsher sound, and it also seems to have the bass boosted even if you have the EQ off. I'd be interested to hear others' thoughts on this.