The long awaited and much anticipated release of the next firmware (v20) for the N97 has finally been released!  Although it is currently only available via NSU (Nokia Software Updater), OTA updating should be available within the next couple of days.  Ive updated the device and can confirm kinetic scrolling is present in contacts along with some new software additions (Vlingo and Maps 3.1 with 3-D).

Update:  Just wanted to add a couple things Ive noticed with the new firmware update:

• The music and video menu both have kinetic scrolling as well alphabetical searching