There's now a delicious-sounding update for Google's Android OS, currently running on handsets like T-Mobile's G1 and MyTouch 3G in the US, the Rogers HTC Dream and Magic in Canada. It's Android 1.6, codenamed "Donut."

The OS update is significant, and it's available as an over-the-air download. It began appearing on some handsets from T-Mobile and Rogers over the weekend. Users note: If it doesn't appear automatically, check availability in your Settings > About Phone > System Updates.

It takes about 10 minutes to download, install and restart the device. Make sure you have enough battery life left, or better yet, plug in your Android before upgrading.

Aside from cleaning up the code and speeding up processes, Android OS 1.6 overhauls the Google Android Market, which is the built-in application for searching and downloading applications. Earlier, the Android Market was decried as clunky; developers felt they could not properly represent their apps. The new Android Market looks visually spiffed up, and now offers apps by "Top" and "Just In" so users can choose among the more popular and the latest apps.

The new Market Place also offers more information on applications as well as screenshots of the apps to give users an idea of what they are downloading.

All told, the Android Market looks comparable to Apple's App Store, complete with users reviews, ratings and see screenshots on each applications.

Android 1.6 also brings universal search to the Google phones, a much-desired feature that scours the Internet, your address book and your applications for results the moment you begin typing on the Android devices.

Universal search is a feature that once differentiated Palm's Pre WebOS smartphone, but that's no longer the case as iPhones and Androids now do it, too. Universal search on Android works as advertised, although it doesn't have as many source options compared to the Palm Pre - i.e. Wikipedia, Google Maps and Twitter.

Still, it's good to see Google actively refining its Android OS, especially considering more handsets will be using the platform in the next few months. In fact, Google seems dead serious about offering the same features of competing platforms, catching up or surpassing the others with each update.

Other Donut-related upgrades include a new user interface for the built-in camera/camcorder as well as performance improvements. Launching the camera app, for example, is 39 per cent faster that before, and there's 28 per cent improvement in shot-to-shot time.

A battery usage indicator has been added, which helps users determine which applications and processes are gorging on the battery.

Support for CDMA telephony, support for touch gestures and improved accessibility features, plus a Virtual Private Network (VPN) control panel round out the new features introduced with this update.