Word on the street is that the read/write access has been gained for the iPhone and iPod Touch v1.1.1. This means that 3rd party applications are now available. Thanks Niacin! They are now inviting beta testers, but not yet releasing open to public.

The jailbreak was discovered through a TIFF exploit that was used to hack previous firmware on the PSP. Loading a certain TIFF file will cause a buffer overflow on the mobile Safari, allowing hackers to run their own code.

Details:

==Terminal==
iphuc 0.6.1 with tab completion.
>> By The iPhoneDev Team: nightwatch geohot ixtli warren nall mjc operator
CFRunLoop: Waiting for iPhone.
notification: iPhone attached.
AMDeviceStartService ‘com.apple.afc’: 0
(iPHUC) /: ls
.
..
Applications
Library
System
bin
cores
dev
etc
mach
private
sbin
tmp
usr
var
(iPHUC) /: putfile ./fstab /etc/fstab [That’s the money line! No errors.]
(iPHUC) /: exit
==/Terminal==

I’m always impressed at how hard programmers work to get their dreams out. Similar to starting up, the iPhone Dev Team was just out to solve problems and add value to the community. Despite knowing that Apple could again patch up the bugs, they went ahead nevertheless. I’m sure there will be more disappointments in the future, but hopefully also more successes for an open iPhone.
I think I just might buy myself one now. Oh yea, and here’s to the iPhone Hackers.

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