iTunes, a little hostfile hacking, a little program called Phone Activation Server v1.0, and you're on your way to an AT&T service free iPhone, friend. That's right, Jon, knock that toxic AT&T-tied iPod-coffee out of Steve's hand.
Ok, so apparently the phone still doesn't work (we wonder if there isn't some kind of mechanism that binds the iPhone to select AT&T SIMs), so it's not like it's an unlocked device, but at least you can now use it as "the best iPod [Apple's] ever made." We've yet to confirm the method though -- anyone want to give it a shot? Let us know in comments.
[Thanks, Justin and Gordon]