The Google Mobile blog announced that Google Maps Navigation, which was originally only available on Android 2.0, is now also available on 1.6 of the Android mobile OS.
Google Navigation is a free navigation system that works on mobile devices with Android 1.6 or 2.0. For more details, see this page.
Tom in the Google Mobile Help forum added a few more details that are not in the blog post.
(1) Android 1.6 that is a build off of the userdebug (test-keys) of the Android OS is not working with navigator. Google is working on a fix for this.
(2) Part of 1.6 also includes Layers functionality and My Maps access.
(3) There is also a bug fix for Traffic layer failing due to memory issues.
Forum discussion at Google Mobile Help.