Well lookey see here, sounds like v1.1.1 isn't all doom and gloom after all. The iPhone dev community's apparently not only moved past accessing the nigh-unbreakable file system protections Apple implemented in the latest iPhone and iPod touch firmwares, they've also managed to hack the SpringBoard app into shape enough to properly launch 3rd party apps (which were, as expected, recompiled to function with the new iPhone frameworks). The iPod touch has apparently also been hacked for root access, and apparently those freshly recompiled apps are functioning there as well. But it's still not without some bad news: unfortunately, it sounds like most (if not all) of these new hacks rely solely on that single TIFF exploit in Mobile Safari, meaning that everyone's back to square one the moment Apple beams v1.1.2 to the public at large.
Read - Hacker toc2rta confirms the exploit and functionality
Read - iPhone jailbroken, apps installed
Read - iPod touch jailbroken