Owners of the $399 iPhone can get a free update, but those with the $299 (8 gigabyte) or $399 (16 gigabyte) iPod touch must pay $20 for their update because Apple tracks revenues differently for iPhones compared with its iPods.

Updates for the iPhone and iPod touch add Web bookmarks to the home screen and a redesigned Maps application that displays a user’s current location.

This week, I’ve been using an iPhone and iPod touch with these updates, and I must say that both devices are much more useful and fun with these improvements. Web clips, or browser bookmarks that take the form of icons on the home screen, give these gadgets a new sense of instant gratification because they direct users to specific Web pages seconds after the device turns on. These little icons can be labeled and moved around, letting you group favorite Web sites on one screen, games on another screen, saved Web research on a third screen and so on.

Getting Synched

Both devices can be updated by synching with iTunes; the iPhone does so automatically and the iPod touch updates only if the owner buys this upgrade through the iTunes Store. New iPod touches include the updated software free.

New to both devices is a redesigned Maps application that, at the touch of a button, displays a user’s current location in an on-screen map — without using Global Positioning Systems. Other non-GPS devices currently do this, but they depend solely on cellphone towers to determine your spot. The iPhone uses both cellphone towers and nearby Wi-Fi hot spots to find your location; the touch uses only the Wi-Fi method.

The iPod touch also now has the same stellar Mail program that is found in the iPhone, a real plus for owners who have been curious about mobile email but weren’t necessarily ready to plunge into a BlackBerry or iPhone, or don’t want to pay for a monthly data plan.

Both devices can store numerous Web clips on up to nine different home screens, each of which has room for 16 icons. A handful of permanent applications appear by default on the main home screen, but these can be shuffled around. Along with Maps and Mail, applications for Stocks, Weather and Notes were also added to the iPod touch.

Multi-touch technology only improves these new features. For example, home screens are easily navigated by flicking a finger horizontally to get from one to the next. Holding a finger on any Web clip causes all of them to jiggle like tiny pieces of digital Jell-O, waiting for you to either delete or drag them around wherever you would like them to stay. Pressing the Home key cements the icons in place.

Trouble Finding Home

But these updates left room for improvement. Maps had trouble on both my iPod touch and iPhone when I asked it to find me in my home in Washington, D.C., and in my office near the White House — the former test circled a 30-block radius while the latter marked me four blocks away. Tests in other locations worked well, and clever “Drop Pin” tools helped me mark and label specific places. But I wouldn’t rely on this feature if I was completely lost and hoping the iPhone or iPod would tell me where I was.

And though I was excited to have email on my iPod touch, this device lacks a speaker and vibrating capabilities, so it can’t chime or buzz to signal newly received email. Because of this, the touch wouldn’t work for me as a serious, everyday tool like the BlackBerry and iPhone.

The free update for the iPhone lets you text message multiple people simultaneously, something the most basic cellphones have been doing for years. But individual responses to these mass texts can’t be seen in the same thread of conversation as that which you started; instead, they generate new text message threads.

On the iPhone and iPod touch, the Maps application now shows hybrid views that combine satellite maps with labeled street names, which are helpful.

The iPod touch is a testament to what can be done on a mobile device without a cellphone carrier’s help. By tapping into Wi-Fi hot spots, which are almost everywhere, I easily checked email, stocks and weather. I had a little more trouble using the Maps application with Wi-Fi because I was more often checking my location while on-the-go in a car or walking.

Collecting Web Clips

I had fun populating the many screens of my iPod touch and iPhone with new Web clips. These are easily added by hitting a “+” symbol at the bottom of any Web page, naming the Web clip and watching it appear on a home screen, often with a colorful accompanying icon like that for AllThingsD.com.

Snapshots of a Web page can be captured and saved in a Web clip by zooming in on a certain section of a page and saving that specific view. This proved helpful when I needed to quickly glance at the Georgetown basketball schedule a few times in one day.

Web applications can be found at www.apple.com/webapps. A game called Ditto involves repeating a pattern on blue, yellow, red and green squares using the touch screen — a digital version of the Simon handheld game. Memory, the old card game, is updated with animated animals on cards. FlyTunes lets users listen to customizable channels from Internet radio, while an app called Floort presents an opinionated topic and asks people to vote on whether they agree or disagree. Even simple Web apps were useful, such as one that turns the screen into a virtual ruler with inches on one side and centimeters on the other.

But it’s good to keep in mind that these are Web applications, and are useless without the Web and/or an AT&T connection.

All in all, Apple’s software updates for the iPhone and iPod touch are exciting, especially because they make home screens much more useful and individualistic. These tiny devices continue to become truly mobile computers.

• Email mossbergsolution@wsj.com.

VTech Communications wants to put an end to this mad phone dash with its new $150 Expandable Cordless Phone System with Bluetooth, the LS5145. This device synchronizes with your cellphone and redirects incoming cell calls to ring wherever the VTech phones are placed in the house. It works with your landline and up to two Bluetooth-linked cellphones, and can be expanded using additional handsets that cost $80 each.

The $150 Expandable Cordless Phone System with Bluetooth from VTech Communications Inc.

The concept of a cellphone extender isn’t new, but not many of them have caught on. Another popular add-on to cellphones at home is the repeater, which focuses on boosting a phone’s signal in a place with poor coverage. The VTech 5145 could work as a repeater, assuming you put it and the finicky cellphone in a place with good coverage. But if your entire house has lousy cell coverage, it won’t work as a repeater.

AT&T licenses its corded and cordless phones through VTech, which sells a less-expensive product similar to the 5145 called the AT&T EP5632. It costs $100 and has the same basic functions as the 5145, but is clunky and much less stylish. Its additional handhelds cost $60 each.

This week, I put my feet up and tried the VTech 5145 and one of its accessory handsets, the LS5105. These phones are stylishly thin and have bright color display screens, which can be set to one of 27 still color wallpaper images or four animated designs. It took me only a minute to pair cellphones with the system using Bluetooth, a wireless technology that connects devices that are within about 30 feet of one another. And the VTech’s primary function — extending the cellphone throughout a house to make it more convenient to answer — worked well, ringing much louder than my cellphone.

But the 5145 didn’t display the numerous names and numbers stored on my cellphone’s contact list. Unless I wanted to painstakingly enter the data into the VTech, incoming calls were only identified with phone numbers, so I rarely knew who was calling. And I could only call the handful of numbers that I know by heart.

Bluetooth technology isn’t incapable of transmitting data: My BlackBerry Curve even tried to transfer its contacts to the 5145, but couldn’t. VTech chose to use headset Bluetooth synchronization on the 5145 rather than hands-free synchronization. Hands-free is the same technology used in most Bluetooth-equipped cars; it provides more access to the Bluetooth device, such as phone-book integration.

I also missed other features on my cellphone when it wasn’t by my side, such as text messaging and voice mail. Incoming text messages were sent to my cellphone unbeknownst to me since I wasn’t near it, and when I didn’t answer incoming calls through the VTech, I had no way of knowing if the caller left a voice mail on my cellphone.

The 5145 includes a base station and primary phone; the 5105 additional handset includes a small stand just big enough to hold it upright. I set up the base station near where I drop my work bag after coming home each night. After the initial pairing during setup, phones automatically link to the VTech, meaning I never had to take my cellphone out of my bag.

I paired the 5145 with two phones at once: a Motorola Razr using Verizon and a BlackBerry Curve with AT&T service. I also tested pairing a third phone with the system, the HTC Pocket PC 6800 from Sprint, though only two cellphones can be paired simultaneously. Just one of the Bluetooth phones can be used at a time, in addition to the landline. As long as the two paired phones stayed within about 30 feet of the base station, they automatically started routing calls through the VTech.

Call waiting worked like using my actual cellphone, except I pressed different buttons on the 5145 to “swap” calls. If you’re chatting on a landline call, you can answer an incoming cellphone call by placing the landline call on hold. If each line — landline and cellular — has call waiting, a total of four callers could potentially be linked to the VTech system at once.

In my house, we gave up our landline years ago, so I tested the system using only cellphones. I saved myself a few trips racing up and down the stairs to find where I had left my cellphone, instead placing the base station on one floor and the additional handset on the other. Using cordless phones for the first time in years reminded me of the issues that accompany this system. The line became fuzzy when I moved too far away from a phone’s base station, though VTech says a connection can stay clear for up to about 900 feet.

I almost forgot that cordless phones can’t be taken out of the house. While on a phone call, I had to stop myself from heading out the front door and continuing my chat as I walked to the corner store. Cellular calls that are in progress on VTech handsets can be continued on the cell by adjusting a setting on the cellphone, or by walking far enough away from the base station to receive a cellphone prompt to disconnect from the system.

I made calls from the handsets by first choosing which of the paired cellphones to use. My calls were received by friends and family just as if I was calling on my cellphone, though a couple of people told me that the connection didn’t sound quite as good.

Each handset is equipped with a speakerphone, and missed calls are noted on the color screen and in a call log, along with the date and time. A built-in intercom system lets handsets communicate with the other or the base station. Users can choose from one of 23 ringtone-like melodies; I chose a steel drum tune for one handset.

If you’re looking for an easier way to answer your cellphone whenever and wherever it rings, VTech’s system might be a good solution for you. But if you rely on your cellphone’s address book to identify callers and aren’t up for inputting these data again, it might be worth waiting for a Bluetooth cordless phone system that will automatically copy data from your cellphone.

Edited By Walter S. Mossberg

• Email mossbergsolution@wsj.com

One of the most important trends in personal technology over the past few years has been the evolution of the humble cellphone into a true handheld computer, a device able to replicate many of the key functions of a laptop. But most of these “smart phones” have had lousy software, confusing user interfaces and clumsy music, video and photo playback. And their designers have struggled to balance screen size, keyboard usability and battery life.

Now, Apple Inc., whose digital products are hailed for their design and innovation, is jumping into this smart-phone market with the iPhone, which goes on sale in a few days after months of the most frenzied hype and speculation we have ever seen for a single technology product. Even though the phone’s minimum price is a hefty $499, people are already lining up outside Apple stores to be among the first to snag one when they go on sale Friday evening.

We have been testing the iPhone for two weeks, in multiple usage scenarios, in cities across the country. Our verdict is that, despite some flaws and feature omissions, the iPhone is, on balance, a beautiful and breakthrough handheld computer. Its software, especially, sets a new bar for the smart-phone industry, and its clever finger-touch interface, which dispenses with a stylus and most buttons, works well, though it sometimes adds steps to common functions.

The Apple phone combines intelligent voice calling, and a full-blown iPod, with a beautiful new interface for music and video playback. It offers the best Web browser we have seen on a smart phone, and robust email software. And it synchronizes easily and well with both Windows and Macintosh computers using Apple’s iTunes software.

It has the largest and highest-resolution screen of any smart phone we’ve seen, and the most internal memory by far. Yet it is one of the thinnest smart phones available and offers impressive battery life, better than its key competitors claim.

The phone is thinner than many smart phones.

It feels solid and comfortable in the hand and the way it displays photos, videos and Web pages on its gorgeous screen makes other smart phones look primitive.

The iPhone’s most controversial feature, the omission of a physical keyboard in favor of a virtual keyboard on the screen, turned out in our tests to be a nonissue, despite our deep initial skepticism. After five days of use, Walt — who did most of the testing for this review — was able to type on it as quickly and accurately as he could on the Palm Treo he has used for years. This was partly because of smart software that corrects typing errors on the fly.

But the iPhone has a major drawback: the cellphone network it uses. It only works with AT&T (formerly Cingular), won’t come in models that use Verizon or Sprint and can’t use the digital cards (called SIM cards) that would allow it to run on T-Mobile’s network. So, the phone can be a poor choice unless you are in areas where AT&T’s coverage is good. It does work overseas, but only via an AT&T roaming plan.

In addition, even when you have great AT&T coverage, the iPhone can’t run on AT&T’s fastest cellular data network. Instead, it uses a pokey network called EDGE, which is far slower than the fastest networks from Verizon or Sprint that power many other smart phones. And the initial iPhone model cannot be upgraded to use the faster networks.

The iPhone compensates by being one of the few smart phones that can also use Wi-Fi wireless networks. When you have access to Wi-Fi, the iPhone flies on the Web. Not only that, but the iPhone automatically switches from EDGE to known Wi-Fi networks when it finds them, and pops up a list of new Wi-Fi networks it encounters as you move. Walt was able to log onto paid Wi-Fi networks at Starbucks and airports, and even used a free Wi-Fi network at Fenway Park in Boston to email pictures taken during a Red Sox game.

But this Wi-Fi capability doesn’t fully make up for the lack of a fast cellular data capability, because it is impractical to keep joining and dropping short-range Wi-Fi networks while taking a long walk, or riding in a cab through a city.

AT&T is offering special monthly calling plans for the iPhone, all of which include unlimited Internet and email usage. They range from $60 to $220, depending on the number of voice minutes included. In an unusual twist, iPhone buyers won’t choose their plans and activate their phones in the store. Instead, they will do so when they first connect the iPhone to the iTunes software.

Despite its simple interface, with just four rows of colorful icons on a black background, the iPhone has too many features and functions to detail completely in this space. But here’s a rundown of the key features, with pros and cons based on our testing.

Hardware: The iPhone is simply beautiful. It is thinner than the skinny Samsung BlackJack, yet almost its entire surface is covered by a huge, vivid 3.5-inch display. There’s no physical keyboard, just a single button that takes you to the home screen. The phone is about as long as the Treo 700, the BlackBerry 8800 or the BlackJack, but it’s slightly wider than the BlackJack or Treo, and heavier than the BlackBerry and BlackJack.

The display is made of a sturdy glass, not plastic, and while it did pick up smudges, it didn’t acquire a single scratch, even though it was tossed into Walt’s pocket or briefcase, or Katie’s purse, without any protective case or holster. No scratches appeared on the rest of the body either.

There are only three buttons along the edges. On the top, there’s one that puts the phone to sleep and wakes it up. And, on the left edge, there’s a volume control and a mute switch.

One downside: Some accessories for iPods may not work properly on the iPhone. The headphone jack, which supports both stereo music and phone calls, is deeply recessed, so you may need an adapter for existing headphones. And, while the iPhone uses the standard iPod port on the bottom edge, it doesn’t recognize all car adapters for playing music, only for charging. Apple is considering a software update to fix this.

Touch-screen interface: To go through long lists of emails, contacts, or songs, you just “flick” with your finger. To select items, you tap. To enlarge photos, you “pinch” them by placing two fingers on their corners and dragging them in or out. To zoom in on portions of Web pages, you double-tap with your fingers. You cannot use a stylus for any of this. In the Web browser and photo program, if you turn the phone from a vertical to a horizontal position, the image on the screen turns as well and resizes itself to fit.

In general, we found this interface, called “multi-touch,” to be effective, practical and fun. But there’s no overall search on the iPhone (except Web searching), and no quick way to move to the top or bottom of pages (except in the Web browser). The only aid is an alphabetical scale on the right in tiny type.

There’s also no way to cut, copy, or paste text.

And the lack of dedicated hardware buttons for functions like phone, email and contacts means extra taps are needed to start using features. Also, if you are playing music while doing something else, the lack of hardware playback buttons forces you to return to the iPod program to stop the music or change a song.

Keyboard: The virtual keys are large and get larger as you touch them. Software tries to guess what you’re typing, and fix errors. Overall, it works. But the error-correction system didn’t seem as clever as the one on the BlackBerry, and you have to switch to a different keyboard view to insert a period or comma, which is annoying.

Web browsing: The iPhone is the first smart phone we’ve tested with a real, computer-grade Web browser, a version of Apple’s Safari. It displays entire Web pages, in their real layouts, and allows you to zoom in quickly by either tapping or pinching with your finger. Multiple pages can be open at the same time, and you can conduct Google or Yahoo searches from a built-in search box.

Email: The iPhone can connect with most popular consumer email services, including Yahoo, Gmail, AOL, EarthLink and others. It can also handle corporate email using Microsoft’s Exchange system, if your IT department cooperates by enabling a setting on the server.

BlackBerry email services can’t be used on an iPhone, but Yahoo Mail supplies free BlackBerry-style “push” email to iPhone users. In our test, this worked fine.

Unlike most phone email software, the iPhone’s shows a preview of each message, so you don’t have to open it. And, if there is a photo attached, it shows the photo automatically, without requiring you to click on a link to see it. It can also receive and open Microsoft Word and Excel documents and Adobe PDF files. But it doesn’t allow you to edit or save these files.

Memory: The $499 base model comes with four gigabytes of memory, and the $599 model has eight gigabytes. That’s far more than on any other smart phone, but much less than on full-size iPods. Also, there’s no slot for memory-expansion cards. Our test $599 model held 1,325 songs; a dozen videos (including a full-length movie); over 100 photos; and over 100 emails, including some attachments, and still had room left over.

Battery life: Like the iPod, but unlike most cellphones, the iPhone lacks a removable battery. So you can’t carry a spare. But its battery life is excellent. In our tests, it got seven hours and 18 minutes of continuous talk time, while the Wi-Fi was on and email was constantly being fetched in the background. That’s close to Apple’s claim of a maximum of eight hours, and far exceeds the talk time claims of other smart phones, which usually top out at five and a half hours.

The interface features \”cover flow\” technology for flipping through album covers.

For continuous music playback, again with Wi-Fi on and email being fetched, we got over 22 hours, shy of Apple’s claim of up to 24 hours, but still huge. For video playback, under the same conditions, we got just under Apple’s claim of seven hours, enough to watch four average-length movies. And, for Web browsing and other Internet functions, including sending and receiving emails, viewing Google maps and YouTube videos, we got over nine hours, well above Apple’s claim of up to six hours.

In real life, of course, you will do a mix of these things, so the best gauge might be that, in our two-week test, the iPhone generally lasted all day with a typical mix of tasks.

Phone calls: The phone interface is clean and simple, but takes more taps to reach than on many other smart phones, because there are no dedicated hardware phone buttons. You also cannot just start typing a name or number, but must scroll through a list of favorites, through your recent call list, or your entire contact list. You can also use a virtual keypad.

One great phone feature is called “visual voice mail.” It shows you the names or at least the phone numbers of people who have left you voicemail, so you can quickly listen to those you want. It’s also very easy to turn the speakerphone on and off, or to establish conference calls.

Voice call quality was good, but not great. In some places, especially in weak coverage areas, there was some muffling or garbling. But most calls were perfectly audible. The iPhone can use Bluetooth wireless headsets and it comes with wired iPod-style earbuds that include a microphone.

Google maps on the iPhone.

A downside — there’s no easy way to transfer phone numbers, via AT&T, directly from an existing phone. The iPhone is meant to sync with an address book (and calendar) on a PC.

Contacts and calendars: These are pretty straightforward and work well. The calendar lacks a week view, though a list view helps fill that gap. Contacts can be gathered into groups, but the groups can’t be used as email distribution lists.

Syncing: The iPhone syncs with both Macs and Windows PCs using iTunes, which handles not only the transfer of music and video, but also photos, contacts, calendar items and browser bookmarks. In our tests, this worked well, even on a Windows Vista machine using the latest version of Outlook as the source for contacts and appointments.

iPod: The built-in iPod handles music and video perfectly, and has all the features of a regular iPod. But the interface is entirely new. The famed scroll wheel is gone, and instead finger taps and flicking move you through your collection and virtual controls appear on the screen. There’s also a version of the “cover flow” interface which allows you to select music by flipping through album covers.

Other features: There are widgets, or small programs, for accessing weather, stock prices and Google Maps, which includes route directions, but no real-time navigation. Another widget allows you to stream videos from YouTube, and yet another serves as a notepad. There’s a photo program that displays individual pictures or slideshows.

The only add-on software Apple is allowing will be Web-based programs that must be accessed through the on-board Web browser. The company says these can be made to look just like built-in programs, but the few we tried weren’t impressive.

Missing features: The iPhone is missing some features common on some competitors. There’s no instant messaging, only standard text messaging. While its two-megapixel camera took excellent pictures in our tests, it can’t record video. Its otherwise excellent Web browser can’t fully utilize some Web sites, because it doesn’t yet support Adobe’s Flash technology. Although the phone contains a complete iPod, you can’t use your songs as ringtones. There aren’t any games, nor is there any way to directly access Apple’s iTunes Music Store.

Apple says it plans to add features to the phone over time, via free downloads, and hints that some of these holes may be filled.

Expectations for the iPhone have been so high that it can’t possibly meet them all. It isn’t for the average person who just wants a cheap, small phone for calling and texting. But, despite its network limitations, the iPhone is a whole new experience and a pleasure to use.

• Email us at mossbergsolution@wsj.com. Find all our columns and videos online free at the All Things Digital Web site: http://walt.allthingsd.com