With the installation of this major software upgrade, the best iPod becomes even more: the world’s best Wi-Fi mobile device. The upgrade—available from iTunes for just $19.99—adds five more great mobile applications to iPod touch: Mail, Maps, Stocks, Weather, and Notes. It also includes such new features as Web Clips, a customizable home screen, and the ability to watch iTunes Movie Rentals on iPod touch.

Available today with the free download of iTunes 7.6, iTunes Movie Rentals allows customers to rent movies for as little as $2.99 and watch them on their Macs or PCs, all current generation iPods, iPhone and Apple TV. Featuring movies from all the major movie studios—20th Century Fox, The Walt Disney Studios, Warner Bros., Paramount, Universal Studios Home Entertainment, Sony Pictures Entertainment, Metro-Goldwyn-Mayer (MGM), Lionsgate and New Line Cinema—iTunes Movie Rentals is expected to offer more than 1,000 movie titles by the end of February, including over 100 titles featuring stunning high definition video with 5.1 Dolby Digital surround sound. Movies can be rented directly from a widescreen TV using Apple TV.

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Industry analysts expect Apple’s heavily rumored 3G iPhone to be delayed, according to a note from RBC Capital Markets analyst Mike Abramsky. The Wall Street Journal reports that the delay will occur …