Those crafty kids on the iPhone Dev Team have already hacked the 2.0 firmware, but now they're getting ready to release the oh-so-creatively-named PWNED tool, which takes iPhone hacking to the next level by patching the bootloader to let you load any firmware image you want -- even images not signed by Apple. That means custom patched firmware can now be loaded directly from iTunes, which simplifies the jailbreaking / unlocking process tremendously, and also means that a patched version of the 2.0 firmware is coming soon. We're putting the tool through its paces right now and we'll have a hands-on with it (and the Dev Team's patched 2.0 firmware) as soon as we get it all working, but check out some highlights after the break, and hit the read link for more info.

Update: Looks like PWNED / Pwned Tool / Pwnage Tool / Pwnage / whatever they're calling it is being delayed for a week. Bummer. Thanks, Neophytos.

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Video of the iPhone Pwned project in action