I just read on Digg that the 1.1.3 firmware for the iPhone has been jailbroken. The team that did it, however, is not releasing it until Apple's iPhone SDK is out so that Apple doesn't patch it.
This means you have to wait until sometime in February before you can run 1.1.3 on a hacked iPhone.
Update: Marcus clarified in the comments that the firmware has been jailbroken and that this is not an unlock. So you can run homebrew apps on it but you won't be able to make phone calls, etc., with the 1.1.3 firmware until the phone is unlocked. (Thanks, Marcus!)
The video here shows the 1.1.3 firmware in use on a jailbroken iPhone.
I'm still on the initial firmware on my hacked iPhone. It was just too much trouble to upgrade/rehack/risk bricking the phone/etc. I will probably upgrade to this when it's released, though, since the first version of the firmware really does suck big time.
The iPhone 1.1.3 firmware jailbroken, to be released next month article by Aral Balkan, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-Noncommercial 2.0 UK: England License.

I went through all of this ***** with my PSP (thank you Sony!) so that’s why I haven’t bought an iPhone yet.. I don’t know how I made it!
Hey Aral!
Just wanted to let you know that while 1.1.3 has been jailbroken, it’s not been unlocked. If you were to upgrade to 1.1.3 you’d pretty much be left with an iPod touch until someone figures out how to crack the baseband.
If you got your phone pre-1.1.2 however (which I assume from your post) you can upgrade to 1.1.2 and unlock that. It’s a bit of work, but not very difficult if following a decent guide.
I’d recommend waiting a bit however, a 1.1.3 unlock is bound to happen ;o)
Hi Aral,
I heard you could get your iPhone unlocked by browsing to a particluar website and following teh instructions there. How did you get yours unlocked?
Hi Aral, I read that 1.1.3 actually un-bricked phones since apparently it is a complete rewrite. Here’s where I read it:
http://www.tuaw.com/2008/01/17/happy-1-1-3-firmware-ending-for-tuaw-reader/
ofcourse, if you did do the update your phone wouldn’t be Jailbroken anymore…
This is why I’m sticking to the sony ericsson – I can do everything I need on it, and I’ve got my PC for the rest of it!
@Marcus: Thanks for the clarification :)
@Alison: I hear you. It’s just a bitch to pair other phones with the Mac. And I tried going back to my N95. But I missed my iPhone, flawed as it is, before the night was through :(
Hello all.
Which firmware is installed on iPhones in Apple and AT&T stores?
From wich week Apple started to ship 1.1.3 firmware?
U guys are being fooled… the video is of an iPod touch not an iPhone. Look close there is no Phone button… wow… nobody caught that yet? JEEEZ no wonder u guys get fooled so often.
I still have v1.0.2 because i was afraid of getting an ibrick. If i update to 1.1.3 now, will i get an ibrick or just lose all of my 3rd party apps?
@Aral: funny, I miss my Sony Ericsson. And it wasn’t any problem at all to pair w/my Macbook Pro. In fact, I had total access to browse the phone and transfer files back and forth to my hearts content, while I can’t do the same on my iPhone. You would think, two Mac OSX devices…but no, wait, there’s the whole profit making scheme thing to consider (ringtones etc.). It was no problem to set any custom audio file to ringtone or alarm on my Sony, too. And the camera on iPhone sucks…big time downgrade from the 3.2 MP Cybershot on my Sony Ericsson.
The area iPhone seems to excel, though, is as a PDA. I’ve never used a blackberry or other smartphone prior to iPhone, but I know entering a text message on my tiny Sony keypad was not worth the time; the keypad interface on iPhone is really sweet and first time ever I am sending emails and using the Internet on a mobile phone. Too bad flash player support is still lacking…
I’m sorry, but doesn’t that say iPod on it, not iPhone?
Hi Blane,
In the video, it was being shown on an iTouch.
The 1.1.3 jailbreak is now widely available but, at last look, had several issues.
aran I upgraded to 1.1.3 but now I want to hack it but I’m afraid I won’t be able to anymore
Does anyone know how the jail-broken and unlocked new 16G iphones (1.1.3) will be able to get the SDK upgrade that supposedly will be released any time now in February ?
Yes guys it is important to update your phone for 1.1.3 jailbreak