9:50 PT - DM: Good morning and welcome to Macworld's live coverage of the WWDC '08 Keynote event. I'm your host Associate Editor Dan Moren, alongside Editorial Director Jason Snell. We'll be here for the next two hours, typing furiously in the hopes of catching everything Steve Jobs says and does. Right now, the music's playing and people are still getting seated.

9:51 PT - JS: Playing Bo Diddley in honor of the late, great musician. Nice touch. I'm sitting here next to Dan Moren, Dan Frakes, frequent Macworld contributor Glenn Fleishman, and Daring Fireball's own John Gruber.

9:55 PT - DM: Ooh, they're playing "Roll over, Beethoven." Nice. I too need a shot of rhythm and blues.

9:59 PT - JS: Macworld's own Heather Kelly is here with us to take some photos of the event as it happens, so stay tuned for that as soon as things kick off.

10:01 PT - DM: Clearly, something important has just happened. Lots of people have stood up. I think Steve Jobs is making a running entrance, Stephen Colbert-style or something. Unfortunately, everybody's standing up, so we have no idea what's going on.

10:02 PT - DM: They've now asked us to turn off our electronic devices. I love that they specifically mention that you turn off your iPhones. Because everybody here has iPhones. If you've got a Blackberry, go ahead and leave it on: because it's *rubbish*.

10:05 PT - JS: The cheers were definitely for Al Gore, a member of Apple's board. I believe he might have held elective office at some point as well. I don't know if he brought his Oscar, though. Probably not. Those things are heavy.

10:05 PT - DM: They're dimming the lights, so we're probably about to get started. I hope none of these people stand up or it's going to be very, very irritating. And we've left off with "Great Balls of Fire.

10:06 PT - DM: Steve Jobs is taking the stage, to rampant applause from the audience. He's wearing a pair of denim overalls...okay, kidding. Black turtleneck and jeans all the way. "We've been working really hard on some great stuff that we can't wait to share with you." There are a record 5200 attendees here. "Wish we could have had more, but we sold out." They can't find a bigger venue than this. 147 sessions; 85 on the Mac and 62 on the iPhone, so it's "gonna be packed." 169 hands-on labs, over 1000 engineers on site, and sessions on iFund and Intel. "One of the best WWDCs ever."

10:07 PT - DM: Let's get started. There's three parts to Apple now: the first part is the Mac, the second part is the music business - the iPod and iTunes, and the third part is the iPhone (no mention of the Apple TV!). Now I'm gonna take this morning to talk about the iPhone first, so Scott Forstall and Phil Schiller will be coming out to talk about the iPhone. Then after lunch, developers are going to get a peek at OS X Snow Leopard (that's right, it's official).

10:08 PT - DM: Let's talk about the iPhone. We're going to talk about iPhone 2.0 first. It's "a giant step forward" from where we've been, and it's got the SDK in it. In the 95 days since the SDK was announced, over 250,000 have downloaded it. Over 25,000 people have applied to the paid developer program. Admitted 4,000 people to the program so far.

10:09 PT - DM: iPhone 2.0 software has three parts to it: enterprise support, the SDK, and some new end-user features. "Let me start with the enterprise. Customers have demanded Microsoft Exchange, so they've built it in out of the box for 2.0 software: push email, push contacts, push calendar, auto-discovery of Exchange severes, global address lookup, and remote wipe security feature. All built in to iPhone 2.0 software. They've added secure VPN services from Cisco and other network service demanded by the Enterprise market. Everything that Apple was told enterprise users want, they've built in.

10:11 PT - JS: This is basically a recap of Apple's previous SDK event a few months back. Good stuff, though.

10:11 PT - DM: The Enterprise markets have participated in beta program: 35 percent of the Fortune 500 has participated in beta program. Top five commerical banks, top five securites, 6 of 7 top airlines, 8 of 10 top pharmaceutical companies, and 8 of 10 top entertainment companies have participated. Phenomenal participation of higher education as well. Going to show a video of Enterprise customers.

10:12 PT - DM: We're getting an assortment of executives from corporations and the military. Disney's been testing the beta release for the past few months, apparently (big surprise). We're seeing a few of the new features, like contact searching, Exchange support, push calendaring, etc. Security is also a big part of the 2.0 release and enterprise features.

10:14 PT - JS: Great line from the military official, who points out that they're one of the few groups in the world that is very mobile, deploys globally, and has people shooting at them.

10:15 PT - JS: Nice iPhone 2.0 tidbit from Dan Frakes as seen in the video: as you're entering your password, you can see the last character that you typed, making it a lot easier to make sure you're typing your password correctly.

10:15 PT - DM: The video gets a round of applause. Maybe it'll be up for an Oscar (fingers crossed). Jobs returns to stage: "That gives you an idea of what we're doing in Enterprise." Scott Forstall is going to come out next to talk about the SDK.

10:16 PT - DM: Forstall: "We're opening up same APIs and tools that we use internally to build all of the shipping apps." Here's a rundown of the APIs and frameworks on the iPhone. The iPhone shares layers with OS X on the desktop; the same kernel is used on both.

10:18 PT - DM: Scott's continuing to walk through the features of the SDK: a lot of this is review of things we've already learned about the SDK in the iPhone event earlier this year.

10:19 PT - DM: We're going to get a quick demo of these tools. Scott's going to focus on constructing a user interface in Interface Builder. He's creating a Basic Cocoa Touch application in Xcode. "Nearby Friends" will use built-in Address Books APIs to access contact DB on phone and the Core Location API to add a location-based service. Filter to show just contacts within 10 miles of current location. (Building a user interface on stage: talk about catering to your audience.)

10:21 PT - JS: It's important to keep in mind that while this is a media event, it's first and foremost a developer event, so Apple is taking great pains to give some meaty developer information to the thousands of Mac and iPhone developers in the crowd.

10:21 PT - DM: Interface Builder is a pretty impressive application: all the UI can be done with pretty much drag and drop. It's incredibly smart and knowing how the UI should look on the iPhone. It automatically aligns elements as necessary, and changes controls based on where they're located and the iPhones orientation.

10:23 PT - DM: There we go: now we're done and with one click in Xcode it runs the full application. "That's how easy it is to write an application and test it in the simulator right here on your Mac." We'll go one step further now: testing on the iPhone. You only need to change one pop-up to do that: switch to build for the iPhone. Scott's demoing the app on the iPhone now and showing it live. Pretty impressive how easy they seem to have made it. Indeed, using the Core Location, it's located only those contacts within 10 miles (hey, Steve Jobs apparently isn't within ten miles!).

10:25 PT - JS: John Gruber says that he hopes that these tools mean that we'll see a lot of apps that support both landscape and portrait modes in the iPhone, and I agree. Not enough iPhone apps support landscape orientation.

10:25 PT - DM: The SDK has been out for about three months, and thousands of developers are out there using it. Apple's asked them what they've thought about the SDK, and the response has been very positive. Here's a quote from a Disney engineer lauding the software development tools. Tom Yager at our sister publication InfoWorld is giving props as well. Here's a plug from the director of mobile product development at Fox. Finally, David Pogue of the NYT calls the iPhone the third major platform after Windows and Mac OS X.

10:26 PT - DM: Scott: "We couldn't agree more. We think we have a fantastic platform here for people to build incredible applications." Apple was really amazed at the quality of the applications that developers have been creating. They're inviting up a handful of developers to talk about what they've been working on.

10:27 PT - DM: Sega is the first one to come up and chat. Apple was impressed with what Sega had done in just the first couple of weeks with the SDK. Here's what they've managed to accomplish after several months. Ethan Einhorn of Sega is coming on stage to demo Super Monkey Ball on the iPhone.

10:28 PT - DM: Eight weeks after the SDK event, they came up with 110 stages of the game. Also "all four of the classic monkeys." Here's the last world in Super Monkey Ball to demo just how well the tilt control works. I'd say the graphics look about on par with the Nintendo DS. Applause as the developer successfully navigates the first checkpoint. The "tilt control works beautifully." Sega loves the App Store and Super Monkey Ball, and they're looking forward to more apps. Super Monkey Ball will be available at launch of App Store for $9.99 (that's a bit lower than some had been suggesting. Nice).

10:29 PT - JS: I always thought Curious George was one of the classic monkeys. And Mickey Dolenz.

10:30 PT - DM: Next we're going to talk about eBay. 84 million active users, the largest online marketplace in the world. Ken Sun from eBay takes the stage. Here are auctions on the iPhone. iPhone is #1 mobile device for accessing eBay. Five weeks ago, they decided to create this application. Easy access to search, summary of activities, and personal avatar. They're going to search for a new WiiFit. You can see the picture, all the information, and they've integrated WebKit to see the buyer's HTML description.

10:32 PT - DM: It'll show you when you've been outbid, so you can easily see what you're winning and losing. Entering a bid is really easy. One more item on watch list: $12.5 million home and golf course. Scroll through the photos. eBay app will be available for free when App Store launches.

10:33 PT - JS: This shows that a lot of companies with fairly sophisticated web sites are still going to develop native applications for the iPhone. As nice as the iPhone's web browser interface is, a custom app to pull data off the net can be much better.

10:33 PT - DM: Our next demo is from "loopt" (I haven't heard of these guys). Loopt appears to be location-based social networking. Sam Altman from loopt will come on stage. Loopt is about "connecting with people on the go." You can basically see your friends superimposed on a map. Best version of Loopt ever made. "The best and most powerful" mobile platform out there. You can see what people have been up to all day, and look at photos they've taken. You can call, text, or comment on your friends' status feeds. "You never have to eat lunch alone again." You can use loopt with your friends on other platforms. The app will be free on the App Store at launch (not lunch!).

10:36 PT - DM: TypePad is up next. Michael Sippey from TypePad is going to demo their native blogging client. Here's TypePad on the iPhone. You can create a text post or take a photo with your iPhone and send it to your blog. Also, you can add a photo from your library into a post. It appears to handle multiple blogs (though all TypePad, presumably). You can choose categories and edit the body text. A pending items view will tell you the progress of posts in the background. Then you can jump to view your post in Safari. The app will be available for free at the launch of the App Store. He gets a nice round of applause; there are a lot of bloggers in this audience.

10:39 PT - JS: TypePad is a good example, but I suspect we will be flooded with blog-posting tools for the iPhone. Which is good, because blogging from the iPhone isn't as easy as it could be, even with iPhone-specific interface plug-ins for blogging tools.

10:38 PT - DM: Next: the Associated Press. They provide news to more than half of the world's population every day. Already, AP has one of the best web apps for the iPhone, but they're making a native app too. Here's Benjamin Mosse to discuss the application. The program is called the "Mobile News Network." You can add locations to get local news; it can use Core Location to get news from wherever you are. And it'll download the news as you're reading it, so you can read later from wherever you are, even when you don't have a network. Also, you can take a look at the award-winning AP photos and watch video from their news network. Look, it's Stevie Wonder! If you have a photograph or firsthand account of a breaking news story, you can submit a report to the AP. Unsurprisingly, they love building iPhone apps. The Mobile News Network will be a free download when the App Store launches.

10:42 PT - JS: There have been a lot of reports about Apple encouraging developers to charge for their iPhone software. Interesting, though, how much free stuff we've seen today on stage.