While iPhone hacking remains a sport for the brave, the utility infrastructure to give Grandma iPhone User the same tweaking power as the most l33t denizen of #iphone is coming along nicely, thanks. Now at version 3, iFuntastic provides a GUI for almost any iPhone modification task you might reasonably want to do to your ($500, possibly instantly out-of-warranty) iPhone.
New features in this version include: PowerPC support, so G4 and G5 users may join in the fun; a 'permanent jailbreak' tool called Unshackling; multiple, editable home screen layouts with custom wallpaper; and simplified/improved ringtone installation. You can download iFuntastic (needless to say, use at your own risk) from iPhoneAlley or Macenstein and go to town.
via iPhoneAlley -- thanks Aron