Apple honcho Steve Jobs today unveiled the latest version of the company’s iPhone operating system software, which adds long-awaited multitasking functions, so that you can finally listen to Pandora and check email at the same time. The new OS will also include the iPad’s iBooks app and an email app that will let you manage multiple accounts from a single inbox. What’s missing? Java and Flash are still no-shows. And don’t expect a porn store anytime soon. “There’s a porn store for Android,” Jobs said in response to a question about opening the App Store to unsanctioned products.”You can download it, your kids can download it. That’s a place we don’t want to go, so we’re not going to.”

Jobs also announced iAd, a platform to help the company grab a piece (likely a very large one) of the massive market for mobile ads (over a billion served each day, according to McSteve). “We do not have plans to be a worldwide ad agency. We don’t know a lot about advertising, but we’re learning,” he said. (Worldwide ad agencies take note: Apple is a very quick learner.)

The new OS will be out this summer for iPhone and iPod touch users, and in the fall for those lucky iPad early adopters. Oh, and speaking of early adopters, if you’ve got an older (as in circa 2008) iPhone or iPod touch, forget about multitasking. “The hardware just can’t do it,” said Steve. Upgrades, anyone?

Live iPhone OS 4.0 event coverage [gdgt]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.