Hot on the heels of the TIFF exploit
released by a splitter group of iPhone/touch hackers, comes the announcement of a 1.1.1 jailbreak from the original front dubbed the iPhone Dev Team. The hack provides jailbreak, activation, and third party apps but only applies to the iPhone and is not meant for iPhones with modified basebands. Just remember, the risk is all yours if decide to rework the holy wares of the Cupertino Messiah. Thing is, if future Apple firmware updates don't stop you, then the increasingly complex and confusing hacking scene most certainly will.
[Via iPhone Atlas