The iPhone 3G hasalready outsold the original iPhone. One reason for all the success? False advertising, says the U.K.'s Advertising Standards Authority. The ASA has told Apple it can no longer air an ad claiming the iPhone accesses "all parts of the Internet," since the iPhone's Safari browser can't access Web sites that use Java or Flash. "Because the ad had not explained the limitations," reads the ruling, "viewers were likely to expect to be able to see all the content on a website normally accessible through a PC rather than just having the ability to reach the website." The naughty ad, below:

Have you heard about Google's "Big Tent," the $100 luxury newsroom Google has set up for bloggers at the Democratic National Convention? If not, here's another story on the Internet where reporters go, Oh man, Google is totes on the pulse, giving all the intrepid young blogger kids at the Democratic National Convention this week a safe place to get massaged for free by ladies and plug in their 'iPones" — read the label — while they change the world together!

A gallery in Hamburg, Germany is set to display and sell framed prints of the red jewel artwork that once graced Armin Heinrich's do-nothing "I Am Rich" iPhone application, priced at €1,000. Sounds like a hoax, but then so did the original application. Apparently the port city is home to more millionaires per capita than any other city in Germany, and at least one of the people stupid enough to buy and download the application from iTunes was a Hamburger. [iPhone Savior]

Apple's iPhone has some 2,000 apps available for download. Of those, 65 have some arguable business application, Ben Worthen notes in a Wall Street Journal blog. Only 3 out of the top 100 most downloaded applications are business-related. The most plausible interpretation of those numbers: iPhone buyers and developers are, 97 times out of 100, uninterested in apps for doing business.But because Worthen writes about "business technology," he looks at the numbers and concludes that "the growth is impressive" — because a month ago, there were zero iPhone business apps. A month ago, there were zero frivolous iPhone apps, too, and they've outgrown business apps 30 to 1. Why not just admit the obvious? People mostly buy iPhones because they're fun. And they install apps for the same reason.

Last week, iPhone developers pounced on a workaround for the Apple gadget's inability to let users cut and paste text between applications. Never mind. Apple's latest firmware update plugs the loophole. Back to writing down phone numbers on paper.

A tipster sent our gadget sister site, Gizmodo, a copy of Verizon's talking points for its employees to use against iPhone mania. Like last year's leaked "iWhatever" email from COO Jack Plating, it comes across mostly as validation that there's no phone like the iPhone in buyers' eyes.But I disagree with my esteemed colleague Kit Eaton at Gizmodo on one thing: AT&T's network is indeed the iPhone's weak spot. At least 50 percent of the U.S. population lives in an area not served by AT&T 3G. Even David Pogue's iPhone musical called out AT&T service quality as a minus. Verizon's EVDO network — which reaches 80 percent of Americans, per the cheat sheet — would be a much better match. Someday.

Mac Guy Justin Long took a moment out of his undoubtedly busy schedule to chat up with a couple of Mac fanatics over the weekend. The friendly females gushed over Long's performance in Waiting before launching in a diatribe against the iPhone 3G and all of its problems. Long told the ladies that he had no control over that and admitted that he was having problems as well. Looking to change the topic, Long ran his fingers through his hair, which accidentally created a trigger effect with his female fans. Thinking he may have stumbled onto a Pied Pieper like ability, Long then ran his fingers through his mane one more time to see if the women would once again follow suit. He was crushed to learn that it was a one-time only occurence.

Have you seen any of those dozens of YouTube videos where a dude in a lab coat puts random things in a blender and proves that, yes, they will blend? It's a successful viral advertising project! So successful that the company claims that "sales have risen 600% since the videos started." The Times points out that most of the company's customer base is commercial, so it's highly unlikely the videos themselves are the reason for the increase. Still, this god damn blender company, of all things, is savvy enough to team up with AT&T to blend an iPhone, and to get itself into the top search results for "Chuck Norris" by blending an action figure, so you have to give them some props, ridiculous though their strategy is. After the jump, watch pop culture things blend for murky reasons:

The iPhone launched in Poland today and like in the U.S., there were plenty of long lines. Unlike in the U.S., those in line were there because they were actors hired paid to look enthusiastic. "We have these fake queues at front of 20 stores around the country to drum up interest in the iPhone," a spokesman from mobile operator Orange told Reuters, which describes the move as "as part of a marketing campaign." What's odd: Unlike in the U.S., where shoppers could only buy an iPhone from AT&T outlets or Apple Stores, Polish shoppers — all abuzz about the iPhone because Orange's marketing campaign — can just buy their iPhones from line-free T-Mobile outlets. (Photo by AP/Sokolowski)

"This is a known iPhone bug that is being fixed in the next software update in September," says a one-line reply from His Steveness Himself to an AppleInsider reader who had written to complain about his iPhone's third-party apps being disabled. Yes, it's really him. Jobs has been spotted in customers' inboxes in 2006, 2007, and earlier this year. Jobs's replies are usually limited to a simple yes-we're-fixing-that. But sometimes, the Dan Lyons version of his demeanor peeks through: "I suggest you calm down. Everyone knows the issue and it is being worked. Steve."

An Alabama woman says Apple's become "unjustly enriched at the expense of Plaintiff and Class members" because her iPhone 3G doesn't get a good reception. She says where she lives supposedly gets good AT&T coverage and that her iPhone doesn't work as well as Apple said it would in its commercials. It's a common complaint. Check out the video comparing the speed of an iPhone in an Apple commercial versus real life embedded below . But we have to ask: instead of filing an expensive lawsuit, why doesn't the plaintiff just junk her iPhone and buy a Palm Centro or a Nokia N90? That seems easier and, you know, vastly less annoying to the rest of us.

A gaggle of iPhone programmers have figured out a way to solve the iPhone's most embarrassing shortcoming: The inability to cut and paste text between applications. OpenClip creates a shared clipboard that doesn't violate Apple's technical restrictions on iPhone applications. It works, but only for applications that are updated to use OpenClip to access the clipboard. The demo starts at 0:58 into the jargony video report above.

Credit InfoWorld's Tom Yager this: He's open with his failings. Perhaps too open. In his latest column "In memory of iPhone 3G," a review of Apple's mobile device, Yager writes, "Well, this is embarrassing but I might as well blurt it out: The iPhone 3G that Apple loaned to me was stolen." But Yager needn't fear Apple. They'll certainly let him test future devices after the warm review he gave this one. Instead, its the rest of us — or those of us that drive — that should fear Yager's testing method:

After claiming over and over that MobileMe migration problems had only affected "1 percent" of us who use Apple's hosted email service, the company sent out an apology and a free extra 60 days of service to all MobileMe users Monday night. Cash value: $16.27.

A year and some after the Facebook platform's launch, few of its widgetmakers have made any real money — unless you count the venture capital they've raised. Just a month after the iPhone 3G launch, Apple CEO Steve Jobs says that $30 million has already changed hands through the iTunes App Store. Even the guy behind the do-nothing "I Am Rich" application made a few thousand bucks. So you, wantrepreneur Web developer, you're thinking: Gee, I made, like, four-and-a-half Facebook Zombie widgets this past year. Maybe I should cook myself up an iPhone app. But hold on there, Steve Jobs Jr. Do you really know what you're getting yourself into?According to Iminlikewithyou's Charles Forman, who's working on porting his startup's copycat games to the iPhone, there's not much in common between the platforms besides the word "app."

The Wall Street Journal reports that Apple's engineers are working on a software upgrade to fix problems with the iPhone 3G's "immature chipset and radio protocol stack," the most likely cause for complaints that the new models drop calls a lot when in 3G mode. Apple uses a custom chip made by Infineon, a German supplier. Officially, no one is saying anything. In reality, "people familiar with the matter" are getting out the word for the companies involved. (Photo by AP/Paul Sakuma)

Best Buy will begin selling Apple iPhones this September, but it won't make much or any money at all doing so, according to retail analyst Colin McGranahan, who writes in a not the chain won't markup the phone more than $50 if at all. So why's Best Buy doing it? One, to sell higher-margin accessories like iPhone cases and speakers. Two, iPhone buyers are the kind of customers Best Buy wants to see more of in its stores — wealthy, and happily swayed by good marketing into buying the lastest shiny new objects.

A security company that crawls the Net turned up personal information for between 100 and 200 users of Apple's MobileMe email service, stored on a server used by phishing scammers. By contacting victims, investigators at CardCops learned that they'd fallen for this week's unusually convincing MobileMe scam. Which really raises the question: Why are most phishing emails so obviously phony? [InfoWorld]

Hidden in the math of a Fortune summary of a report from investment bank Piper Jaffray: Apple Store sales only account for 2 of every 5 iPhones sold. AT&T stores sell one in five, and overseas phone stores sell the other 2. Using Piper Jaffray's estimates, you can summarize sales for the upcoming Xmas-gift-driven last quarter of the year as: 2 million through Apple's own stores, 1 million through AT&T, and 2 million elsewhere in the world. Then factor in your Best Buy prediction. What I want to know: What's 2 million times the average wait time in an iPhone line? (Chart by Piper Jaffray)

During today's trading, Apple hit a market capitalization of $159 billion; Google's worth hung at a mere $157 billion. In November, when we predicted Apple would soon be worth more than Google, thanks to the iPhone, we drew scathing remarks from the commenters. One called it "the dumbest thing you've ever written." But the iPhone is an even bigger hit than the most fervent Macheads might have predicted. And the Googlephone, as we noted back then, is still just a set of developer tools. (You might get to preorder an HTC Dream running Google's wireless operating system in September.) What we got wrong: Apple dropped its innovative revenue-sharing scheme in favor of the more straightforward — and highly profitable — business of selling cell phones with a subsidy from carriers. (Screenshot by Digital Daily)