Hello, Firmware 2.0. Nice to JAILBREAK YA.
The iPhone Dev Team, who rumor has it just last night
got ahold of the new firmware that ships with the SDK (1.2, which will be released to public as 2.0), has already decrypted the disk image and jailbroken the firmware
This image shows screenshots of apps running on the 1.2 firmware, which requires a dev certificate to do normally, although none have yet been issued. The jailbreak currently only works with hacked activation, meaning it won't work with AT&T iPhone's yet. However, come on, this is like 2 hours ago it happened, you AT&T folk won't be left in the cold.
Props to the iPhone Dev Team
on this one, and thanks to King Chronic for the heads up
UPDATED: Here's the video.
Cash UPDATE: removed irrelevant video.