Ok, this smacks of the nifty.

Netflix on Thursday updated its iOS App Store software, bringing compatibility for iPhone and iPod touch users to stream movies and manage their Instant Watch queue.

Netflix 1.1 is now available for the iPhone, iPod touch and iPad and allows Netflix customers with unlimited memberships to stream content from their Instant Watch queue.

Per AppleInsider, users can pick up watching where they left off with a movie or TV show on another device, such as their iPad, TV, or computer. The application also allows users to manage their Netflix queue, but only for Instant Watch. There is not currently a way to manage the queue for mailed discs.

As with on the iPad, the streaming service even works over 3G on the iPhone. The software uses adaptive technology that allows instant switching between Wi-Fi and 3G connections.

The app requires iOS 3.1.3 or later to install and run.

If anyone out there’s tried the new version, please let us know what you make of it.