Although initial reports reveal that Steve Jobs doesn't look his best, Steve Jobs began this morning's presentation with an enthusiastic word about being back on the job at Apple.

He received a standing ovation.

The big announcement from Apple?

A new version of iPhone with operating system 3.1 was unveiled.

Adding ring tones to iTunes was also part of the big announcement.

Live coverage from PC World reveals:

So today we're introducing something really great, and that's iTunes 9. The next major release of iTunes.

iPhone 3.1 is available today, free download from iTunes for 3.0 users.

Adding ringtones from major labels, adding ringtones into iPhone iTunes app. Show up right on your iPhone, in the settings, and it's really easy.

Automatically makes recommendations for apps from the App Store based on apps you own.

Now today we have something new for iPhone and iPod touch users, iPhone 3.1, with a bunch of new features and bug fixes. Now we've applied Genius technology for apps in the app store.

Prior to the start of the event, CNN reported that Apple is cutting prices for their current product line:

• * 8 GB iPod touch reduced to $189 from $229 ($40 off)
• * 32 GB iPod touch reduced to $279 from $399 ($120 off)
• * 16 GB iPod nano reduced to $149 from $199 ($50 off)
• * 120 GB iPod classic reduced to $229 from $249 ($20 off)