Well there is really no way to “upgrade” the iPhone 3G to make it an iPhone 4, but there is an upgrade available that will give your cousin 100 new features for her iPhone 3G. She needs to upgrade her phone with the iOS 4 software update and it won’t cost her a thing. Some of the new features include the multitasking that she was wanting, folders, better email, and iBooks. She will also be able to create playlists, 5x digital zoom, home screen wallpaper, gift apps, spell checking and also wireless keyboard support.

It is very easy to install also:

1. Make sure you are using the latest version of iTunes. Connect your iPhone to your computer.

2. When iTunes opens, select your iPhone under “Devices” in the “Source List” on the left.

3. In the iPhone “Summary” pane, click “Check for Update”.

4. Click ‘Download and Install’. Do not disconnect your iPhone until the update has finished.

If she needs to get the instructions to do this, she can go to the Apple website and the url is listed below. Hope this helps and that she enjoys her “new” iPhone. :-)

She may want to wait a bit and make sure the bugs are out of the system. It seems some people are having trouble with it. Some complaints have been that it shortens battery life, makes the phone heat up and slows the phone down. However, if she has the iPhone 3GS the problem does not seem to be as bad.

When you are ready to upgrade, here is how you do it:

Connect your iPhone to your desktop through your sync cable. ITunes should come up if you have the “Open iTune when this iPhone is connected” checked off in the summary tab.

Once iTunes has finished its procedures, you should have an update alert. If not, tap the “check for updates” button. You should then see a notice that the IOS 4 is available. Cancel it. First, run backup and then initiate restore. When you do this, you should have a button that says, “Restore and Update”. This button will restore and update your phone to IOS 4.

After restoring, reboot the phone. A “set up your iPhone” screen will come up. Restore your backup by checking the “Restore from the backup of…” option and click continue. Everything should be restored.

That’s it! You are done! Enjoy IOS 4!

I see that charray and artzigirl have given you the steps to upgrading to the new OS but I wanted to add something. I’m not a real phone geek so when things like this come along they kind of intimidate me (hence reading answers on things like this which others ask!). I often choose to go back to the phone store before I make changes. The sales rep deals with people on a daily basis and knows which issues may be causing the most grief. I would recommend your cousin go in and visit her favorite store rep and tell them what she uses her phone for the most. They may be able to tell her if upgrading may cause those favorite features to become a problem for her. Otherwise, if she just upgrades and it locks up the things she loves the most she may no longer love the phone at all. The video below shows the freezing issue which was seen with the new phones.

Your cousin should wait until all the reviews are in before she downloads the new operating system. I recently downloaded it for my iPhone 3G and ever since then I've had problems. Yes, I now have multitasking and some other nice features, but the reception is worse and I keep getting calls cut off.

Some of my apps freeze in the middle of running, and the battery (which is already weak to begin with) needs constant recharging. It seems that Apple tried to put too much into the upgrade, more than the 3G can handle. I now have to get a new phone, and I may even switch allegiance and go to the Blackberry. I have to decide if the quality of the phone is more important than the number of apps I can buy.