Twitbit [$4.99 - iTunes link] is a Twitter client for iPhone and iPod touch that includes built-in push notification for not only @mentions but direct messages as well.

It was not long ago that Rene introduced us all to the app, and we wouldn’t be telling the truth if we didn’t say things started off pretty rough with the initial launch. TiPb is happy to report, however, with the latest upcoming update, 1.1, things have changed greatly.

• More granular push configuration
• Selectively push DMs, mentions, neither, or both.
• Better push support while the app is running (new message badges, vibrations, etc.)
• New direct message workflow
• Summary/inbox view that’s modeled after the built-in “Messages” app, organized by user
• Threaded conversations
• Landscape tweet and direct message composition
• Built-in photo browser with landscape support
• Landscape mode in the built-in web browser
• Saved searches
• Person search
• Saved timeline position
• More tweet actions (open in browser, send in email)
• More browser actions (send in email, post link in tweet)
• Customizable tab order
• Customizable re-tweet format
• Fix for the “HTTP 401″ error when posting tweets and direct messages.
• Lots of other UI enhancements and bug fixes

TiPb has been putting this latest beta through it’s paces the past two weeks and so far so we’ve been impressed. Look for Twitbit 1.1 to hit Apple’s App Store any day now.

Pictures of Twitbit 1.1 in action after the break!