A group of hackers have claimed full ownership of the Apple iPhone 's OS X-based filesystem. What's more, these kids are so l33t they've posted their findings on IRC channel #iphone under the heading "How to Escape Jail."
The hackers claim "we have owned the filesystem" [sic] and go on to talk about exactly how they managed to unlock the phone (note SIM-free pic on the right). They also mention how you can mod your iPhone. The steps tutor would be iPhone-hackers in how to enable custom ringtones and adorn the bland interface with custom wallpapers.
The hackers posted this picture as proof of their achievements. Expect more developments in this area, especially as Apple has openly admitted the iPhone is based on OS X - certainly not the most vulnerable OS around. But not exactly a mystery to those who wish to tweak it.