So apparently with this update Find My iPhone is now a free service!! Super cool! And setting it up is insanely easy!!
Go to Settings
Click Mail, Contacts, Calendars
Type in your iTunes account info
Agree to new terms of service
Switch on Find My iPhone!
Now you can go into the App Store and download the free Find My iPhone app and use it to track the location of all your iDevices!! How cool is that!?!?
The best thing is you can now log in to MobileMe (even if you don't pay for an account at www.me.com and it will pop up a map with the location of all your iOS devices!!