Interesting - my iPhone is currently at 4.0.1 (as it's jailbroken and 4.0.2 breaks the breaking). The new iTunes is not offering to update me to 4.1, but only to 4.0.2.
*Edit* now it's updated the version it will update to 4.1 - but it's not offering me the usual options (i.e. there's no Download Only).
*Edit of edit* ...and quitting and launching it has fixed that, now downloading the update, yawn, can't actually use it until there's a jailbreak for it (because I can't live without all my snazzy extras...)
_________________________ If it's brokenless, don't suffix it...
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