Gearlive reports that Apple has seed the latest version of the iPhone OS to iPhone developers who registered before July 11th 2008.

Version 2.1 (beta 1, build 5F90) of the iPhone OS is said to include new Core Location features suggesting that turn-by-turn GPS could be on the horizon. Core Location is said to be able to track your direction and speed.

Also included within the new OS is some early push notification APIs that allow applications to receive notifications in the background.

In addition to GearLive’s report MacNN is noting that some developers have found hints relating to copy and paste functionality.

One notes that in exploring the Localizable.strings entry under English.lproj in the current iPhone WebKit framework, there are entries for several commands the firmware does not currently support, including cutting, copying and pasting.

Apple’s own Greg Joswiak has recently stated that copy/paste functionality has not been high enough on the priority list so far, but suggested that there it could be coming in the future.

Apple also seeded a new version of the iPhone SDK to developers but the new SDK can not be used to submit Apps to the current App Store.