Apple has recently release iPhone OS 3.1.3 and iPhone OS 3.1.3 for iPod touch. The update fixes several bugs that plagued the software. For example it will prevent apps from crashing when using the Japanese Kana keyboard, and will finally launch 3rd party apps that iPhone OS 3.1.2 refused to launch. More about this topic here.
From a security point of view, the iPhone OS 3.1.3 fixes a total of 5 vulnerabilities. Like for example a buffer overflow issue that applies to how CoreAudio handles mp4 files. If the user were to play a maliciously crafted mp4 file, it could lead to an unexpected application termination or arbitrary code execution. Out of the 5 vulnerabilities, 3 could potentially allow a person with malicious intent to run arbitrary code on the targeted device. More on this topic here.
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For the reasons presented above you are very well advised to plug in your iPhone or iPod touch, launch iTunes (which was recently updated to version 9.0.3) and get the iPhone OS 3.1.3. But if you care about your jailbreak and unlock, then you will definitely not want to update.
According to the iPhone Dev Team, iPhone 3GS users should stay away from iPhone OS 3.1.3. Apple just recently released iPhone OS 3.1.3 and Pwnage Tool and redsn0w are not compatible with OS 3.1.3 just yet. Redsn0ow works with iPhone OS 3.1.3, but only if you have an iPhone 2G, iPhone 3G, or an iPod touch 2G.
“Thanks to daring experimenters, we can confirm that yesterday’s redsn0w works for today’s 3.1.3 update for iPhone 2G. Just point it at the 3.1.2 iPhone 2G IPSW after doing update or restore to 3.1.3. Can confirm that this method works for iPhone 3G and iPod touch 1G too. Don’t do it for iPhone 3G if you need an unlock though (really, don’t!). For those with older (non-MC) iPod touch 2G, we’ve compiled a special version of redsn0w meant just for you. You guys can get in on the “3.1.2 loophole” too using this special version. Don’t try this if you have a newer iPod Touch 2G or if you’re not completely sure what version you have. And of course don’t try it for 3GS or ipt3G either,” says the Dev Team.