Nexus One's everywhere just started receiving OTA updates, but for those of you who can't wait the update can be manually installed. Some N1 owners seem to be having problems using their alternate keyboards. However, a quick reinstall seems to fix the problem. It isn't completely clear what this update has changed yet but it's assumed that it's only a minor update since the file size is only 3.9 MB. N1 owners should keep in mind that this update is only intended for those with stock versions of Android. Those of you who have flashed custom Roms or have Rooted your device should wait for the developers to release their own update.
If you'd like to install this update manually please follow these steps carefully:
1. Download the official Android 2.2.1 firmware for the Nexus One from Google's server here.
2. Copy the file to the root directory (aka not inside any folder) of your microSD card and name it update.zip (newb warning: not update.zip.zip)
3. Power off your phone.
4. Hold down the VOLUME DOWN button and power it back on.
5. Wait for your phone to load the skating Androids screen. Scroll down to recovery and press the POWER button.
6. When you see the "/!\" symbol, press the POWER button and the VOLUME UP button at the same time. You should be presented with a menu and one of the options should be "Apply sdcard:update.zip".
7. Use the trackball to navigate to "apply sdcard:update.zip" and select it.
8. When you see "Install from sdcard complete", select "reboot system now".