Should I update my iPhone 3GS to the most recent IOS (not sure exactly what it is called)? I heard that it drains bettery and disables camera. Is this true? Or is there an IOS 5 out? Should I update to that? Is it possible with a 3GS?
It's a beta, in fact it's only the first beta, so it will be buggy.
It's only available to developers, unless you pirate it. It is possible, but I wouldn't recommend it unless you have a second device to play around with.