HTC is working on an Android 2.0 update for the HTC Hero according to Engadget. Hero owners can lean back and not be too disappointed when a Droid owner shows them Android 2.0. The only open question is how long Hero owners will have to wait until the Android 2.0 update is available.

Yesterday we reported that the Android 2.0 (Eclair) release could be too big for the G1.
The T-Mobile G1 system partition is just 69120 kb in size. A commenter on the story by the name of og01, who is apparently a developer says that Android 2.0 would fit with a few simple optimizations to reduce the footprint.
og01 also says if T-Mobile did not release an update the community could still do it themselves with a adp/rooted phone, and by keeping parts of the OS stored on a SD memory card.