1.1.2 jailbreak GUI on the freedom-lovin' iPhone world. According to Erica at TUAW, the OS X software siphons data from your downgraded (or pre-existing) 1.1.1 iPod touch or iPhone, upgrades it with the Jailbreak, installs Installer.app and SSH.app, and then ups the whole shebang to your device. As mentioned, you'll need to have 1.1.1 on your system (if you've upgraded or purchased a device with 1.1.2 installed), and this won't fly on units that have been "hactivated" (i.e., it only works with iTunes-activated devices). Hit the read link and learn all about sticking it to Apple... proper-like.
[Thanks to everyone who sent this in]