Although the iPhone Dev Team totally punked us on April Fool's Day, they were still nice enough to give us an early hands-on (in person!) with a pre-release version of their new Pwnage tool. Pwnage lets you load in any firmware you want, including patched firmwares not signed by Apple -- which could lead to everything from custom software distributions to totally new OSs ported over (like, say, Android or Linux). We did what most people are probably going to do, however: we took a brand new 8GB iPhone, unlocked it, and upgraded to the 2.0 firmware, while keeping it active on T-Mobile. It's not exactly a one-click process, but it's not all that hard either -- although we kind of cheated and had Dev Team members talking us through it. Peep the vid after the break, and check the read links in few hours to get your hands on Windows and Mac versions of the tool.
P.S. -Apologies for the blurry video for the first couple minutes, we didn't notice that our camera had gotten knocked out of macro mode. You're not missing much, trust us. Oh, and the only cuts are during loading bars and when we accidentally flashed a phone number and the iPhone's serial number -- we figured you didn't really want 20 minutes of listening to people sniffle during progress bars.
Read - iphone-dev.org (Pwnage tool creators)
Read - The iPhone Project (hosting the Pwnage tool)