The current (as of Dec 2008) iPhone SDK allows me to pick between 3 versions when I want to build an app: 2.0, 2.1, 2.2. -- I\'ll ignore 2.1 below.
My assumptions:
In my testing, if you use 2.0 you can't make use of the application badge functionality - that appears in 2.1 (so you may need to at least use that level)
Tim