After announcing new privacy settings for the social-network Facebook, the company is also slated to release a new and improved Facebook application for the iPhone.

Facebook has a lot going on this summer: it just became the most popular social-network in the US, beating MySpace for the first time which for long has held the record; also Facebook will integrate its services with Microsoft’s Xbox, then there's also Facebook’s recent high-profile personalized URL addition.

Facebook claims the app for the iPhone is “98% done”. It will be called the Facebook for iPhone 3.0. An actual release date has not been finalized but should be out soon.

The new Facebook iPhone app will feature a completely new home screen with easier access to various functions. It’ll also feature the live-streaming news feed available on Facebook’s web interface. Other options in the mix are the “like” option which helps one indicate their approval of a friend’s update. The homescreen will also come with expanded customization to allow users add links to profiles and pages of your choice.

Some of the other improvements will be: expanded photo functionality, including the ability to create new albums, upload photos directly into an album, zoom into photos and tag photos; an option to call or text Facebook friends from within the application; Better management of notifications; added support for events including the ability to RSVP; better support for notes and pages.