Apple has begun seeding iPhone 2.2 Beta 2 to developers. It had been discovered in Beta 1 that Apple included APIs related to Google Street View in Google Maps, and in the latest seed Street View is now fully enabled. Additionally, walking directions are now available along with public transportation directions and schedules. Screenshots after the break.

Included seed notes also indicate that line-in audio devices are now supported in the SDK.
[via MacRumors & iPhoneYap.com]
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