This firmware update, version 3.07 includes lots of new features. There is now album art in the music selection list, including a cover flow styled menu. You can download the new firmware here, after you do that, unzip it, there should be two files, copy them over to the main directory of your P2 and then disconnect it from your PC, you'll have to restart it a couple times as it updates, but thats all there is to it.
There are some new icons, the ability to zoom in on a video if it wasn’t formatted to the size of the player’s screen, the ability to zoom and rotate on photos, some new text file features. There are some video games that have been added as well, it looks like there are 5 new games.
You now have the ability to record FM radio streams, you can now delete files directly from the device. The custom EQ in the DNSe menu now moves in a slightly different way, meaning you can move them all at once with your finger or raise them all the same amount if you want, there is also a play speed adjustment to slow down or speed up tracks. You can also set various pictures, after you do what little editing you can on the player, as your background or skin.