The International settings (including localizations, languages, and keyboards) are all present in the iPhone 1.1.1 firmware, but are by default disabled by Apple, probably because development is not yet completed for these features and/or because the iPhone has not yet been released outside the U.S. Nonetheless, they seem to work without causing any issues if you enable them. To do so:
1. Install a SFTP client on your iPhone
2. Log into your iPhone via SFTP from your computer
3. Copy the file /System/Library/CoreServices/SpringBoard.app/M68AP.plist to your computer.
4. Open M68AP.plist, and change the boolean /root/capabilities/International from NO to YES, then save the file.
5. Upload the modified M68AP.plist to your iPhone, overwriting the original
6. Restart your iPhone
7. Now look in Settings->General->International
