Pwnage tool for jailbreaking iPhone OS 2.0 has been released
The iPhone 2.0 firmware has just been cracked. Through a post titled Thanks for waiting, the iPhone-dev team has just announced a new version of its jailbreak software for the iPhone and the iPod Touch. Note that this update only jailbreaks the iPhone 3G, it does not unlock the device. Yet.
Jailbreaking allows the iPhone to run any unsigned app, while unlocking allows a phone to work with any SIM card.