The iPhone development community has done it again. Software/firmware revision 1.1.3 has been jailbroken (full read/write access to the filesystem), meaning that unofficial third-party applications can be installed under this release. Unfortunately, the current method is so complex that its developers have decided to hold off a public release [Update: We've also learned that the jailbreak method requires hardware modification]. However, they have posted a YouTube video, embedded below, demonstrating a jailbroken iPod Touch running firmware 1.1.3. We have confirmed that this video is legitimate, and that the jailbreak has been accomplished for both the iPhone and iPod Touch:
Developers tell us that dissection of the firmware update reveals that it carries the code name: "LittleBear."
Apple is due to discuss an official iPhone SDK (software development kit) next month.