While it's not quite ready for mere mortals to use it, hackers that call themselves the iPhone/Touch Dev Team say they've finally managed to jailbreak the iPhone firmware version 1.1.1. It's great news because 1) the latest iPhone can be activated again without signing up with AT&T and 2) third-party applications will be able to run once again, kinda. Don't get too excited just yet, though, because there's still a lot of "major hacking" left to do. Full details from Dev Team after the jump:

• Third Party apps run. Kind of. We probably have to recompile many of them for the new frameworks because many of them crash.

• Springboard no longer recognizes DisplayOrder.plist. And the list of "whitelisted" apps (that is, the official Applications including Safari, Photos, Calendar, etc) seems to be hard-coded into Springboard.app

• The iPhone has been activated via third-party workarounds.

• The 1.1.1 binaries barely work with 1.0.2—at least not well enough to run the music store without major hacking.

• The Mobile Terminal App works on 1.1.1.

• The entire bsd suite still works—as do standard command-line utilities compiled for ARM.

• 1.1.1 references both com.apple.mobile.radio and com.apple.mobile.nike.

• The jailbreak method is nowhere near ready for prime time. So please be patient.