Hi chinamom,
we are very sorry for the inconveniences. The v1.2 of the iPhone App is not compatible with the iPhone OS 3. Thus we uploaded the new and compatible v1.3 more than a week before the iPhone OS Update was available. Normally this would have been more than enough time, but Apple is extraordinarily slow these days processing updates, seemingly many many programmers are updating right now! Though we guess the update will be available today or tomorrow. I'll post another message as soon as it's downloadable but you should notice it in iTunes or on your device as usual, too.
Thanks for your patience,
the BG online developer team