At today’s keynote event, Steve Jobs announced the upcoming availability of iOS 4.1 for the iPhone and iPod touch. Jobs noted that the long running proximity sensor, Bluetooth, and iPhone 3G performance bugs that have been raised by users will be fixed in this update.

New features to iOS 4.1 include High Dynamic Range photos, HD video upload over Wi-Fi, TV show rentals, and Apple’s Game Center will make its official debut.

iOS 4.1 will be available next week for iPhone and iPod touch and will be a free update.

Jobs also revealed that iOS 4.2 will be released in November, finally bringing iOS 4.x support to the iPad. The free update will include wireless printing as well as a new feature called AirPlay, which replaces AirTunes. AirPlay will offer streaming of video, music, and photos. iOS 4.2 will be compatible with the iPad, iPod Touch and iPhone.

Along with announcing iOS 4.1 and the forthcoming iOS 4.2 for the iPad, Apple announced all-new iPod models at today’s keynote event.

The new iPod shuffle will see the return of buttons and will still include the VoiceOver feature that debuted in the last Shuffle model. It also has playlists capability and will take advantage of the Genius Playlists recently introduced. It will have 15 hours of battery life and will come in 5 colors: silver, pink, gold, blue, and green. The 2 GB Shuffle will cost $49.

The iPod nano has also been updated, removing the click wheel and adding a multi-touch interface to reduce the device’s overall size. The new nano is 46% smaller than its predecessor and will have 24-hour battery life.

Finally, the next generation of the iPod touch includes the Retina Display with 324 pixels per inch that made its debut on the iPhone 4. The new iPod touch will also get Apple’s A4 chip, a 3-axis gyroscope, a rear-facing camera that can record HD video, and a front-facing camera that will work with Facetime. The iPod touch will have iOS 4.1 with Apple’s Game Center and will offer 40 hours of music playback battery life. The iPod touch will cost $229 for the 8 GB model, $299 for 32 GB, and $399 for 64 GB.

Alongside new iPod models, Apple today introduced a new version of iTunes, dubbed iTunes 10. The new version of the media management application features a streamlined interface and a new networking feature called Ping, along with a new, more modern icon.

Ping is a social network for music that will help users discover new music, allowing users to follow favorite artists and friends. Ping will also create a custom chart showing music selections based on those followed. Users can choose to allow others to follow them automatically or by approval. There are over 160 million iTunes users, all of whom will be able to sign up for the new Ping service immediately.

As hinted early in the keynote with the mention of TV show rentals, Steve Jobs today announced the second generation of Apple TV hardware, a significant redesign for the device. At one-fourth the size of the original Apple TV, the new device features HDMI and digital audio outputs, as well as Ethernet and 802.11n Wi-Fi and will offer only rentals from the iTunes Store.

Unlike the previous Apple TV, the new model will not have any significant internal storage, relying on streaming content only. Additionally, media can no longer be purchased but only rented. First-run HD movies can be rented for $4.99 on the day the DVD is released. Renting HD TV shows will cost $.99. At launch, only ABC and Fox will offer their HD shows for rental at this price.

For more , head over to apple’s site , and watch the entire Keynote Video as well