Even though I got to Moscone West at 5:30AM, I only got into the overflow room, about 20 minutes after the keynote started. Until now I wasn’t able to get online anywhere, even with my iPhone.

The catch-phrase for the line was Respect The Escalators, which they kept telling us repeatedly.

Looks like I missed the Time Capsule introduction.

New iPhone features available today via software update. maps with location, web clips on the home page, customizable home screen.

Added 5 apps to iPod touch: Mail, Stocks, Maps, Weather, and webclips. Built into new iPod Touch, $20 update for existing customers.

iTunes: last week Apple sold their 4 billionth song. Sold 20 million songs on Christmas day, there one day record. 125 million TV shows, 7 million TV shows, more than anyone else but didn’t meet expectations. iTunes Movie Rentals! Supported by every major studio. Over 1000 films February. Films will be added after DVD release. Watch anywhere, watch instantly, must start watching within 30 days and finish 24 hours after starting. Can be transferred to different devices in the middle of watching. Library titles will cost $2.99, new releases $3.99.

Launches today with software updates for iTunes, iPod, and iPhone to support rentals.

Apple TV Take two. Still syncs, but no computer needed. Can rent movies directly on TV. Movies can be rented in DVD quality or HD. Can view audio & video podcasts directly from AppleTV. Can get photos directly from Flickr & dotMac, videos from YouTube. Can now buy TV shows & music directly from AppleTV. HD titles cost $1 more. Entirely new user interface. One menu with all features. Can preview movies before renting. Can buy music from the TV. HD Podcasts are available and can be played immediately, streaming. All free. Can play movies from dotMac.

The demo gods strike! Attempting to play a slideshow from Flickr.

Free software upgrade for current Apple TV! Price reduced from $299 to $229 in two weeks.

Steve introduces the CEO of Fox. New DVD will include a copy that can be transferred to iTunes, iPod, iPhone, Apple TV.

THERE’S SOMETHING IN THE AIR! MacBook Air. The world’s thinnest notebook. MacBoook Air is thinner than the Sony TZ series. Steve holds up a manilla envelope containing a Macbook Air. Opens to a full sized keyboard & display. Magnetic latch, 13.3″ LED backlit wide screen. Built-in iSight. Keyboard has ambient light sensor. Multi-touch gestures, Double-tap to move an entire window around. Pan & rotate with two fingers. 3 fingers work like flicking in iPhone. Pinch to zoom. 1.8″ hard drive, 80 GB hard drive, or option of 64GB SSD. Board is the length of a pencil. Intel Core 2 Duo, 1.6 GHz standard, 1.8 GHz option. Intel produced core 2 duo in a package 60% smaller. The size of a dime, thickness of a nickel.

Steve introduces CEO of Intel, Paul Otellini.

Smaller 45w MagSafe adapter. fold-down door for USB 2, mini DVI, headphone jack. 802.11n & Bluetooth 2.1+EDR built in. No optical drive. External Superdrive connects to USB port for $99.

Remote Disk can “borrow” optical drive from another Mac or PC, works just like a local optical drive. 5 hours of battery life with wireless turned on. Weighs 3 lbs, .76 inches at thickest point. Sells for $1799. Ships in 2 weeks.

First 2 weeks in 2008 introduced new Mac Pro, Time Capsule, companion product to Time Machine, new iPhone & iPod Touch feaures. iTunes Movie Rental, new Apple TV, and MacBook Air. Hints at new stuff in 50 weeks to come.

Randy Newman is the special guest.