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David Pogue has a great collection of iPhone keyboard tips on his NY Times weblog:

As iPhone Week continues here on Pogue’s Posts, here’s a bunch of cool info about the virtual keyboard that nobody-I mean, not Apple, not the bloggers, not the reviewers-has said anything about. [Update: DOH!! Apple JUST posted a video about the keyboard. Hmph. Well, it’s still not as detailed as what follows.]

iPhone Keyboard Secrets – Link

He also has a bonus tip, which I will use all the time; it makes typing punctuation marks as smooth as silk: Link