A new exploit discovered, might help in cracking 1.1.1 soon
It looks like the dev team is up to something. I have been following them over at IRC and it looks like Mobile Safari on both the touch and the iPhone are suffering from a one year old TIFF exploit.
Basically, opening a carefully crafted TIFF image will crash mobile safari, causing a buffer overflow and allow for arbitrary code execution. This same exploit was used more than 1.5 years ago to crack the PSP firmware.
EDIT: Stop posting retarded questions on the irc dev channel. The dev channel is only for iPhone developers/hackers. Post generic iphone/unlocking questions to #iphone or #iphone-tards
EDIT 2: The exploit wasn't discovered by the Dev team. It was discovered by PSP hacker Niacin. It was posted in the dev channel though.
EDIT 3: See page 10 for updates from Niacin.