As you recall, when Apple rolled out firmware version 1.1.1 for their iPhone, people with “modified” handsets got a series of unpleasant surprises. Thankfully, the iPhone/Touch Dev Team have apparently worked their way through the tangled mess. They say that because it’s still quite experimental, they’re not quite ready to release it to the public, but the team is claiming that they’ve broken through iPhone firmware version 1.1.1.
The long and and the short of it is thus: An iPhone running on 1.1.1 can be activated without signing up with AT&T; and third party application are more or less good to go again. Many of them crash still, so they’ll have to be recompiled for the new frameworks.
On a side note, the team has noticed that “1.1.1 references both com.apple.mobile.radio and com.apple.mobile.nike.” Something new in the works? In any case, the “jailbreak method is nowhere near ready for prime time. So please be patient.”