Yahoo has released the 2.0 update to their free Yahoo Messenger client for the iPhone. The major new feature isthe addition of two-way video chat. The feature makes it one of the first iOS apps to support two-way video chat over 3G and gives iPhone 4 and fourth generation iPod touch owners the option of chatting with the front or back camera. iPhone 3GS users can use the back camera on their phones. Pure audio chat is also supported.
Besides video calls, the update adds VoIP to standard phone numbers at discounted rates and free SMS messaging.
An iPhone 3GS, iPhone 4, and either third or fourth generation iPod touch players can use extra multitasking features.