Google is in the process of updating the Nexus One over the air with Gingerbread Android 2.3.4. The update doesn’t have everything other 2.3.4 users will enjoy, however. Since the Nexus One has no forward facing video camera, Video Chat over Google Talk, which we reported here, is unavailable. But there’s other noticeable tweaks including bug fixes for phone shut downs, WiFi connectivity, GPS accuracy, and battery life. Users can wait until the update reaches them, or they can do a manual update. Here’s how …

To update your Nexus One manually, download the update directly from Google. Then, rename the file to “update.zip.” Copy the update to the microSD card in the Nexus One. Before inserting the card, shut down your phone. Insert the card and turn on the Nexus One while holding down the trackball. This will put the Nexus One into a menu screen where you can select Bootloader.

After Bootloader is selected, the next screen will offer Recovery mode. Choose that. Your Nexus One will reboot and begin the update process (you’ll know because of the Android Robot Exclaimation point icon). You’ll want to press the volume up and power button at the same time here. It may take a few tries before you get it to reach the next step, which is to choose “Apply sdcard:update.zip.” Once done, the Nexus One will complete the update and you’re all Gingy!