The freeing of iPhone software 1.1.1 marches on. 3rd party applications have successfully been run on "jailbroken" iPhones running Apple's latest software update.
Things aren't as complete or smooth on 1.1.1 as they are on 1.0.x just yet, but hackers have been able to get apps installed and running as normal, and their icons to show on the home screen. SpringBoard apparently isn't working just yet on 1.1.1, and the number of icons displayable on the home screen seems to be capped at 15.
This DOES NOT mean you can upgrade your unlocked iPhone to 1.1.1. Unlocked iPhones will brick if upgraded, which means they'll turn into very shiny, expensive paperweights incapable of making calls or doing anything else. What this does mean is that owners of locked but hacked iPhones still running on AT&T have a way to get both Apple's latest features and third-party software running side-by-side.
More as it happens ...