Silvio Rizzi has released an update to his popular Reeder Google Reader client for tbhe iPhone and iPod touch. Reeder 2.0.3 adds support for background task completion on multitasking-capable iOS 4 devices, allowing synchronization to finish in the background after the app is closed.
The update also adds a new setting to allow users to choose whether folders should open as a list of feeds or articles by default and fixes some graphic and compatibility issues when running on iOS 4. This update does not yet add retina display support for the iPhone 4, however the developer notes that this will is coming soon in another update.
Reeder 2.0.3 is available from the App Store for $3 and is a free update for current users. An separate iPad-native version is also available for $5.