[ame="http://www.youtube.com/watch?v=idxxKVM1Cno"]YouTube - 1.1.3 Jailbreak (with Installer.app launch)[/ame]
The iPhone dev team has achieved 1.1.3 jailbreak on both the iPhone AND the iPod Touch. The jailbreak solution has NOT been released to the public, and according to them will not be until February when the SDK releases, that way Apple doesn't get to see the method, and break it before the SDK releases - jailbreak + SDK = awesome app functionality, for that free price we've all come to love for iPhone applications (but always remember - if you like an app, DONATE TO THE DEV!!!!!).
Once the jailbreak is made public, make sure you toss some fundage over to the dev team for their work. (Their site is down right now or I'd link - will add link when its back up). Rock n' roll, folks, the cat and mouse game continues.