That's right, the folks at the iPhone Dev reported via TUAW that they have accomplished jailbreaking on iPhones with the 1.1.1 firmware. Third party apps do run, though most of them will require a recompile. Most of the 1.1.1 applications won't work with 1.0.2 firmwares, which isn't surprising -- Apple probably did a bunch of work on their ABI though the API itself remained stable. The jailbreak method isn't ready for general consumption, so they ask our patience, but there are some tidbits that they've found buried in the update: "1.1.1 references both com.apple.mobile.radio and com.apple.mobile.nike". This probably isn't the first of little hidden tidbits about 1.1.1 that we've seen.